EUR corporate bond valuations have stabilised at high levels. Significantly, this asset class received direct support from the ECB through its Corporate Sector Purchase Programme (CSPP). In this article, we look at the impact the tapering of this programme will have on the market.
Valentine AINOUZ, Sergio BERTONCINI
The CSPP became operational just a few months ago, but it has already produced dramatic effects on the EUR credit markets. The flexibility of the programme, together with its sustained purchase trajectory, which is spread widely on a very large number of bonds that cover all IG ratings, curve buckets and sectors with issuers from many countries, contributed to the effectiveness of the CSPP.
Valentine AINOUZ, Sergio BERTONCINI, Bastien DRUT