28 Oct 2014
ECB buys €1.704B of covered bonds in first week - Deutsche Bank
FXStreet (Łódź) - Jim Reid, Head of Global Fundamental Credit Strategy at Deutsche Bank, notes that the ECB purchased €1.704B of Covered bonds last week, broadly in line with projections.
Key quotes
"The result was broadly in line with what was expected but it’s a long way to go to reach a Trillion Euros."
"We still think they'll have to do Government QE to get there, a view shared by our Economists."
"They simply don't think there's enough private securities to be able to realistically buy enough bonds to meet their target."
"My team contributed to a section in this week's Focus Europe where the conclusion is that buying corporate bonds is a decent possibility but that they will still eventually need to do full QE to get the desired volumes."
Key quotes
"The result was broadly in line with what was expected but it’s a long way to go to reach a Trillion Euros."
"We still think they'll have to do Government QE to get there, a view shared by our Economists."
"They simply don't think there's enough private securities to be able to realistically buy enough bonds to meet their target."
"My team contributed to a section in this week's Focus Europe where the conclusion is that buying corporate bonds is a decent possibility but that they will still eventually need to do full QE to get the desired volumes."