Homepage / Share Market / This is why the ECB purchases corporate bonds
Menyelami Dunia Slot Thailand: Keseruan dan Peluang Kemenangan Besar Menyelami Dunia Slot Thailand: Pengalaman Bermain yang Tak Terlupakan Find your perfect match with your comprehensive dating reviews Find love and friendship with an asian american dating app Enjoy the many benefits of the meet asian singles app – test it today Hướng dẫn chơi slot game tại casino HappyLuke HappyLuke Casino Trực Tuyến Get prepared to have the full time of one’s life The Remarkable Globe of Tarot Card Reading Cards Numerology Calculator by Day of Birth: Taking Advantage Of the Power of Numbers Discover Numerology Name by Day of Birth Free Psychic Analysis Online: Your Key to Insight and Assistance Are Tarot Cards Evil? Play 22,546+ Casino Slot Demo Games Водка БЕТ Казино официальный сайт и зеркало Vodka Casino Find your perfect match with quick hookup near me Top 7 Best Lesbian Cougar Internet Dating Sites in 2022 ◉ Sugar Daddy Ireland: Seeking Sugar in IE | SugarDaddySeek Online Kasino & Sportovní Sázení Oficiální Web Melbet Bonusları: Türk Oyuncular İçin En İyileri Roulette In Italiano Situs Slot Judi Bola Casino Online PutriJP Bagaimana Cara Memainkan Slot? 9 Kiat Terbaik Provider Permainan Kasino & Slot Online Terbaik Pragmatic Play Pragmatic Play Slot Mainkan Demo Gratis best name for boy 4718 best name for boy 2378 Purchase Lyrica Online Safely and Discreetly Do Any Kind Of Online Casinos Approve Bitcoin? Free Dime Slots Online: Your Ultimate Overview to Playing and Winning Ideal Online Casinos that Approve Mastercard Deposits The Safest Online Online Casino: Making Certain a Secure Gaming Experience No Wagering Casino Incentives: A Game-Changer for Online Gaming DMSO Cream: A Functional Solution for Various Ailments Exactly How to Decrease High Blood Pressure: A Comprehensive Guide Top Online Casinos that Approve Neteller Deposits Online Gambling Establishments Accepting Mastercard: A Comprehensive Guide Finest Mobile Online Casino Site: The Ultimate Overview Live Casino Site Online: The Ultimate Overview The Power of Psychic Analyses Bier Haus Fruit Machine Online Free: A Fun and Thrilling Experience Why Do Blood Vessels Look Blue? What is Mometasone Furoate Cream Made Use Of For? Open the Keys of Numerology with a Free Numerology Calculator The Ultimate Overview to Online Tarot Card Readings Numerology Calculator: Opening the Mysteries of Figures Opening the Keys of Online Free Tarot Analysis Online Online Casinos with Neteller: A Convenient and Secure Settlement Option Online Gambling Enterprises That Accept Bitcoin: A Comprehensive Overview A Guide to Finding Online Casino Bonus Money Opening the Mysteries of Psychic Card Analysis GIS Support Top-3 kasyna online na prawdziwe pieniądze w Polsce 7slots ile En Ýyi Slot Eðlenceleri ve Ödüller Resting around: From Chaucer to Castro | Life and magnificence | Intercourse Story: The Mom Giving Nudes From a cafe or restaurant Restroom Reasons Behind the Increase in Sex Shops Официальный сайт букмекерской конторы 1Вин 1win Team Россия Результаты, расписание матчей календарь игр Dota 2 The International 2024 Киберспорт Чемпионат Christchurch Casino facing money-laundering allegations Otago Daily Times Online News Best NZ Online Casinos 2024 Top Real Money Online Casinos Los mejores casinos online en Argentina 2024 mostbet Verimli Açýlýþ Hediyesi! mostbet En Büyük Fýrsatlar Sizinle! Get started now and revel in the many benefits of adult hookup dating TITRE II : JEUX D’ARGENT ET DE HASARD, CASINOS Articles L320-1 à L324-16 TITRE II : JEUX D’ARGENT ET DE HASARD, CASINOS Articles L320-1 à L324-16 Азино777 на деньги ️ Играть в игровые автоматы казино онлайн Mostbet-az90 Qazanmaq Kazinoda və onlayn mərclərdə Azərbaycan Online Dating Is Damaged. Can The Metaverse Fix-it? Enjoy the many benefits of on line dating with your rich people dating website Jogo do aviãozinho: o que são as apostas de cassino e como PL aprovado pode legalizar prática? what to anticipate from an asian chatroom Online Turnkey Casino and Gambling Software Platform CasinoEngine What makes a gay daddy chat room unique? Get ready to chat and flirt with sexy singles Аудиокниги на английском языке топ лучшей литературы по теме Читайте и слушайте онлайн на MyBook Как делать ставки на сайте российского букмекера 888 ru: инструкция Get ready for exciting and fun local hookup chats Benefits of joining a couples seeking third person dating site Start your search now and meet your perfect match for nearby hook ups What makes interracial dating in buffalo unique? La Females Dating: Call Cute Ladies Trouble-Free Get prepared the ultimate asian hookup experience things to look for in a gay sugar daddy website 10 Most Readily Useful More Mature Females Hookup Sites – Victoria Milan Video pornografi anak: ‘Orang tua korban’ ikut menyaksikan, kata polisi BBC News Indonesia Video pornografi anak: ‘Orang tua korban’ ikut menyaksikan, kata polisi BBC News Indonesia Video pornografi anak: ‘Orang tua korban’ ikut menyaksikan, kata polisi BBC News Indonesia Video pornografi anak: ‘Orang tua korban’ ikut menyaksikan, kata polisi BBC News Indonesia 1xSlots Partners: здесь твой трафик будет дожат Обзор ПП от прямого рекламодателя онлайн-казино 1xSlots Winning Tips for Live Roulette at 1xSlots PinayVlog com Best Pinay Porn Site and Hot Pinay Sex Scandal PinayVlog com Best Pinay Porn Site and Hot Pinay Sex Scandal PinayVlog com Best Pinay Porn Site and Hot Pinay Sex Scandal Nasıl kumarhane başari bet casino çevrimiçi seç müşteriler2024’te Get started now – find the perfect hook up site for couples PinayVlog com Best Pinay Porn Site and Hot Pinay Sex Scandal PinayVlog com Best Pinay Porn Site and Hot Pinay Sex Scandal Ways to get Laid in Abu Dhabi – where you should get and Date women Зеркало Casino — Доступные фриспины, игровые слоты джекпот

Share Market

This is why the ECB purchases corporate bonds

The European Central Bank published a report for the first time on Monday of its corporate bond purchases, as it comes under pressure to taper its buying program.

“When the ECB buys bonds in the primary market it is essentially taking the place of some other investor who would have bought the bonds but cannot because the ECB bought them instead. That other investor still has money that it wants to invest but no more Apple or MacDonald’s (as an example) bonds to buy. So they have to use that money for some other investment. That is how the ECB pushes liquidity into the economy,” Erik Jones, professor of International Political Economy at Johns Hopkins University, told CNBC via email.

The ECB decided to purchase corporate bonds in March 2016 as part of its quantitative easing (QE) program to overcome the scarcity of government bonds. Monday’s released data showed that LVMH, Kering, Unilever, Nestle, Repsol and Shell are among the bonds purchased over the last year or so.

These ‘non-standard policies’ have helped reduce sovereign and credit risk, curtail funding fragmentation, improve liquidity and increase asset prices. One of the most powerful channels through which QE has worked is a weaker currency, which has boosted the competitiveness of the euro zone,” Shweta Singh, senior economist at TS Lombard, told CNBC via email.

However, analysts believe that the ECB’s decision to detail their corporate bonds purchases will affect its quantitative easing program. Even though the information is already available, the fact that the name of the company, its international securities identification number, the maturity date and the coupon rate of the bond will be available in one place will help to better assess the trends in the corporate debt market, especially for investment grade debt.

“The debate is already shifting towards the diminishing benefits of ECB QE and the rising risks of side-effects and market distortions, especially against the backdrop of healthy euro zone recovery and increasing scarcity of assets to buy. The CSPP (corporate sector purchase program) disclosure details reflects this shift,” Singh from TS Lombard noted.

Jones from Johns Hopkins University made the same point. “I think this disclosure will attract attention to QE at a time when people are already asking how long the program can and should continue. It will also attract controversy because of the appearance and reality that the program distributes benefits to specific corporations that issue bonds.”

The ECB said that in its latest economic bulletin that corporate bonds purchases are “deliberately broad and its composition is primarily guided by monetary policy and risk management considerations.” It added that the central bank “aims for a market-neutral implementation” of the stimulus program.

“Of course the ECB will argue that the broader implication of the program is to improve financing conditions for all firms, including those that do not rely on private capital markets for their liquidity requirements. Nevertheless, the perception that the ECB is picking winners will be hard to dismiss,” Jones claimed.

He added: “This will not spell an end to the QE program but it will provide fodder for those who want to argue that the program should be wound up as soon as possible.”

In Germany, for example, there’s been many calls to end QE so the low interest rate environment stops hurting German banks in detriment of supporting peripheral lenders.

Follow CNBC International on Twitter and Facebook.

Source: cnbc europe
This is why the ECB purchases corporate bonds

Comments are closed.