Covered bonds brace for increased ECB buying
The European Central Bank has been increasing its proportion of covered bonds relative to other assets bought through its asset purchase programme (APP). Bank research analysts expect that the ECB’s presence will be even more keenly felt in 2020, with covered bond redemption volumes set for a steep increase and with the central bank free to buy at levels below the discount rate.
Weekly data published by the ECB suggests that the share of APP assets bought under the Public Sector Purchase Programme has been reduced, while the proportion of private sector purchases, such as corporate and covered bonds, has increased.The ECB began buying net €20bn net in assets ...
Please take a trial or subscribe to access this content.
Contact our subscriptions team to discuss your access: email@example.com