Liquidity push has ECB lending covered bonds and prompting trade reporting

05 Mar 2010

The European Central Bank will make the portfolio of covered bonds it acquired under its Eu60bn purchase programme available for lending, it said on Thursday, and has prompted the European Covered Bond Council to launch a consultation on post-trade price transparency, as it seeks to improve market liquidity.

As anticipated by The Cover and reported in EuroWeek last week, the ECB announced the move to lend out covered bonds after the monthly meeting of its governing council."This decision will be implemented by the Eurosystem central banks on a voluntary basis through security-lending facilities offered by central ...

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