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FIG market disagrees over efficacy of ECB carry trade

Bankers on Thursday disagreed over the potential effects of the ECB’s three year long term refinancing operation (LTRO) announced last week. While some analysts suggested the idea of banks using ECB funding for profitable sovereign debt carry trades was not the “back door bazooka” many made it out to be, others said such a strategy could increase primary demand for senior FIG debt.

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