ECB dashes hopes of equity-linked recovery

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By Aidan Gregory
27 Jun 2019

Equity-linked bankers said this week that European Central Bank president Mario Draghi has ended their slim hopes of a meaningful revival in convertible bond issuance this year, after he said he could cut interest rates and resume buying bonds if eurozone growth fails to pick up.

Draghi's statement last week sent government bond yields to record lows. At the start of the year, markets had been pricing in a rate rise by the ECB after the end of the summer, but the possibility of higher rates in Europe now looks far off.

Lower ...

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