ECB steps up secondary covered bond purchases

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By Bill Thornhill
24 Mar 2020

In the absence of primary issuance, the European Central Bank has ramped up its covered bond purchasing in the secondary market. But, since it has yet to speed up buying under its newly set up Pandemic Emergency Purchase Programme (PEPP), there are high hopes that liquidity will soon be restored.

Net weekly covered bond purchases rose to €1.3bn last week, and since there was no primary issuance, average daily purchases conducted in the secondary market were at least €260m which, according to ABN research analyst Joost Beaumont, was the highest so far this year, and “an early signal ...

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