ECB adjusts guidelines to allow negative coupons, changes ABS haircuts

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ECB adjusts guidelines to allow negative coupons, changes ABS haircuts

ECB 230x150 euro sculpture
Euro-Sculpture in front of ECB in Frankfurt am Main, Hesse, Germany Photo by: Daniel Kalker/picture-alliance/dpa/AP Images | Daniel Kalker/Daniel Kalker/picture-alliance/dpa/AP Images

The markets haven’t accepted that negative coupon bonds could become anything but an anomaly, even in a world of ongoing quantitative easing and persistently low or negative rates — but the European Central Bank is preparing for that eventuality.

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