Corporate credit tightens sharply on new €750bn ECB programme
Corporate credit spreads bounced back on Thursday after the European Central Bank announced a new €750bn bond buying programme to battle the economic fallout from the coronavirus, but syndicate bankers said that there would likely need to be a longer period of stability before the primary market reopens.
The ECB has announced the Pandemic Emergency Purchase Programme (PEPP), which will buy sovereign and corporate debt and will last for the duration of the coronavirus pandemic.The news sent Europe's investment grade corporate spreads ricocheting back from recent wides. One banker said they looked to be about 20bp ...
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