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Forumer attivo
ECB adds corporate names to QE-eligible bonds
The ECB has for the first time added a series of companies to the list of issuers whose bonds it can buy.
"The bazooka is ready - just a few days before the Greek referendum," said Alberto Gallo, credit strategist at RBS.
Up until today, the ECB was buying the bonds of government agencies in addition to its shopping list of government bonds, writes Joel Lewin.
This morning it published an updated list of the eligible issuers on its website, which now includes a several corporate issuers for the first time, all of which are Italian infrastructure firms.
The corporate names are ENEL- a multinational manufacturer and distributor of electricity and gas, Terna- an Italian electricity transmission system operator and SNAM- an Italian natural gas infrastructure company.
Hyung-Ja de Zeeuw, a credit strategist at ABN AMRO says she thinks they chose these specific corporate names "because it wouldn't disrupt the level playing field (competition). They have natural monopolies."
The ECB paths the way for changes and amendments, saying the "list may further be amended on the basis of monetary-policy considerations and duly reflecting risk-management issues".
The ECB also added a series of state-owned firms to the list, including Administrador de Infraestructuras Ferroviarias- the company responsible for Spain's railway infrastructure, SNCF Réseau- France's railway maintenance firm, DARS d.d -the Motorway Company in the Republic of Slovenia and various other utility firms.
Said Frederik Ducrozet at Credit Agricole:
The timing for the ECB's announcement is a mild surprise, but a further broadening of the list of agency debt was expected at some point, in line with previous comments.
There would be no major surprise in terms of the new names included, although by moving away from pure SSA to quasi-corporate bonds the ECB could seek a greater transmission of QE to the real economy. At the margin, it should also help the ECB reach its monthly target for asset purchases by expanding the universe of eligible securities, especially if it were to consider an increase in QE as a response to a potential Grexit.
http://on.ft.com/1CcrGIr
The ECB has for the first time added a series of companies to the list of issuers whose bonds it can buy.
"The bazooka is ready - just a few days before the Greek referendum," said Alberto Gallo, credit strategist at RBS.
Up until today, the ECB was buying the bonds of government agencies in addition to its shopping list of government bonds, writes Joel Lewin.
This morning it published an updated list of the eligible issuers on its website, which now includes a several corporate issuers for the first time, all of which are Italian infrastructure firms.
The corporate names are ENEL- a multinational manufacturer and distributor of electricity and gas, Terna- an Italian electricity transmission system operator and SNAM- an Italian natural gas infrastructure company.
Hyung-Ja de Zeeuw, a credit strategist at ABN AMRO says she thinks they chose these specific corporate names "because it wouldn't disrupt the level playing field (competition). They have natural monopolies."
The ECB paths the way for changes and amendments, saying the "list may further be amended on the basis of monetary-policy considerations and duly reflecting risk-management issues".
The ECB also added a series of state-owned firms to the list, including Administrador de Infraestructuras Ferroviarias- the company responsible for Spain's railway infrastructure, SNCF Réseau- France's railway maintenance firm, DARS d.d -the Motorway Company in the Republic of Slovenia and various other utility firms.
Said Frederik Ducrozet at Credit Agricole:
The timing for the ECB's announcement is a mild surprise, but a further broadening of the list of agency debt was expected at some point, in line with previous comments.
There would be no major surprise in terms of the new names included, although by moving away from pure SSA to quasi-corporate bonds the ECB could seek a greater transmission of QE to the real economy. At the margin, it should also help the ECB reach its monthly target for asset purchases by expanding the universe of eligible securities, especially if it were to consider an increase in QE as a response to a potential Grexit.
http://on.ft.com/1CcrGIr