By Eleftherias Kourtalis The global economy is at a critical juncture and there is a risk of a recession in the second half of 2022 due to inflationary headwinds and tightening economic conditions, with a 40% chance, JP Morgan notes in its new report on bond market outlook. Should strong fundamentals and strong balance sheets […]
Tag: PEPP
What does Athens want from the ECB’s ‘shield’ mechanism?
By Tasos Dasopoulos Athens is eagerly awaiting the completion of planning and the implementation of the ECB’s new “cutter” for the spreads of over-indebted Eurozone countries, in view of the first increase in interest rates within the month, as Greek bonds are the only European bonds that do not they are investment grade. The Ministry […]
ECB Bond Investment Plan – How to Buy (and) Greek Bonds
LAST UPDATE 16:20 The European Central Bank will buy bonds from Italy, Spain, Portugal and Greece with part of the proceeds from the maturity of German, French and Dutch debt in an effort to reduce the difference between their borrowing costs, Reuters reports. citing sources. The ECB will begin this balancing act on Friday to […]
Fitch: Expects the ECB’s new program to include bond purchases
The European Central Bank’s new program to combat fragmentation can reduce the risk of large fluctuations in borrowing costs, negatively affecting the debt dynamics in the Eurozone countries, especially for the most indebted countries, Fitch Ratings reports in an analysis of. The ECB’s program is expected to support the creditworthiness of these countries, Fitch said, […]
FAZ: Concern over new euro crisis
Concerns are growing about a new euro crisis in the ranks of the European Central Bank (ECB), according to the German press. At an emergency meeting on Wednesday, the ECB’s Governing Council explored ways to limit divergent yields on eurozone government bonds by redistributing its portfolio. This would allow them to buy more bonds from […]
Morgan Stanley: ECB to activate PEPP flexibility and buy Greek and Italian bonds
Her Eleftherias Kourtali Morgan Stanley estimates that the most likely scenario is for the ECB to announce today more details about PEPP’s reinvestment program and emphasize their flexibility by starting the Italian and Greek bond markets, rather than a new tool. However, it is not certain that this will be enough to finally address the […]
Deutsche Bank: Why the ECB can not yet activate a new support program
Of Eleftheria Kourtali It should come as no surprise that the ECB has not announced or provided details on a possible new program to support the bond market, as Deutsche Bank points out and explains why the central bank has not yet been able to do so, although it estimates that sooner or later he […]
Citi: The ‘catastrophic’ consequences of the ECB’s turnaround on governments and debt management
Her Eleftherias Kourtali The ECB will soon withdraw its monetary stimulus measures – negative interest rates and net asset purchases – that have prevailed for the past eight years. This, according to Citigroup, will have a significant impact, including on the behavior of the governments of the eurozone countries. He points out that the reversal […]
ECB: Completion of the APP in the third quarter – Interest rates unchanged
The European Central Bank (ECB) today reaffirmed its forecast for the completion of bond markets under the Assets Purchase Program (APP) in the third quarter, which will pave the way for higher interest rates to tackle record inflation. of recent months in the shadow of the Russian invasion of Ukraine. However, the ECB reiterates in […]
What do the ECB announcements mean for the Greek economy?
By Tasos Dasopoulos Yesterday’s decisions of the European Central Bank, which brings an end to bond markets earlier, indirectly opening the chapter of the interest rate increase that will significantly affect Greece despite the continuation of support after PEPP, seem like a careful balancing exercise. The reversal of monetary policy was imposed by things as […]