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 ECB has already started “tapering” less corporate purchases than other programmes since April 2017, the month which saw the reduction from €80bn to €60bn of monthly purchases. Recently, President Draghi was not the only member of the ECB Governing Council noting that in 2018 the “ECB will continue buying sizeable quantities of corporate bonds in the programme”.
Head of Rates and FX Research
Valentine AINOUZ, Sergio BERTONCINI, Bastien DRUT