April 30, 2020

ECB: Additional liquidity and credit support measures while speculations about HY purchases were kept alive

Share on facebook
Share on twitter
Share on linkedin
Share on email

In Short

At today’s policy meeting the ECB embarked on additional credit support measures. It set up a new so called pandemic emergency longer-term refinancing operations (PELTROs) program. It consists of seven additional refinancing operations starting in May 2020 and maturing in a staggered sequence between July and September 2021 in line with the duration of the collateral easing measures.
ECB: Additional liquidity and credit support measures while speculations about HY purchases were kept alive
Share on facebook
Share on twitter
Share on linkedin
Share on email

Highlights:

  • Today the ECB launched further credit support and liquidity measures by creating pandemic
    emergency longer-term refinancing operations (PELTROs) without a specific lending target at
    a fixed rate of -0.25 %. It also eased the TLTRO III conditions further to up to -1.0%.
  • President Lagarde emphasized the high uncertainty surrounding the current outlook. That
    said, the ECB expects a gradual recovery as the containment measures are lifted.
  • The inclusion of Fallen Angels bonds in asset purchases was not discussed in the Governing
    Council but speculations about this were kept alive in the Q&A session.
  • Looking ahead, we see a high chance that the ECB will again act in June and extend its
    Pandemic Emergency Purchase Program (PEPP) beyond 2020.

Download the full publication below

ECB: ADDITIONAL LIQUIDITY AND CREDIT SUPPORT MEASURES WHILE SPECULATIONS ABOUT HY PURCHASES WERE KEPT ALIVE

RELATED INSIGHTS

Market Compass March 2021
Edited by the Macro & Market Research Team. The team of analysts based in Paris, Cologne, Trieste, Milan and Prague runs qualitative and quantitative analysis on macroeconomic and financial issues.

The team translates macro and quant views into investment ideas that feed into the investment process.
Market Compass January 2021
Edited by the Macro & Market Research Team. The team of 13 analysts based in Paris, Cologne, Trieste, Milan and Prague runs qualitative and quantitative analysis on macroeconomic and financial issues.
The team translates macro and quant views into investment ideas that feed into the investment process.
Market Compass December 2021
Edited by the Macro & Market Research Team. The team of 13 analysts based in Paris, Cologne, Trieste, Milan and Prague runs qualitative and quantitative analysis on macroeconomic and financial issues.
The team translates macro and quant views into investment ideas that feed into the investment process.

Also interesting

Blue-sky-white-clouds-temperature-hot-thermometer
00:06:05
April 7, 2021
Podcast

The Spotlight ǀ Generali Investments Podcast: Some like it hot

abstract-highway-bridge-background-picture-id1131330933 (1)
April 2, 2021
Real Assets

Generali Real Estate ǀ Interview with Aldo Mazzocco, CEO

size 3
April 1, 2021
Market Commentary

COVID-19 UPDATE Facts & Figures