ECB: crushes the accelerator on Qe in the sign of flexibility … – Italian Stock Exchange

(Il Sole 24 Ore Thomson Financial) – Nicosia 5 mar – Finally there and ‘a firm date for when the famous bazooka ECB will fire’ the first shots. As explained today by Mario Draghi’s press conference in Nicosia, the actual launch will take place ‘next Monday’ March 9, and as announced on 22 January, are planned bond purchases to 60 billion Euros per month, a figure that includes the covered bonds and Abs on which the operations are already ‘been launched a few weeks ago. To read the details published in the press conference ended by the ECB about the mode ‘which will be’ led Qe (or Public Sector Purchase Programme, PSPP), it is clear that Frankfurt, havi ng also facing a task unprecedented in its history, has chosen the way of flexibility ‘: the individual central banks will enjoy a certain discretion in the conduct of purchases even if you will be’ the supervision of the Board and may also decide to vary to some extent the pace of purchases as an indication of massim to be precisely to purchase securities for € 60 billion per month. However this threshold will not be ‘written in stone and the central banks of the individual countries will adopt the pace considered more’ suitable at the time. Purchases of course only affect the secondary market and will be commensurate with the capital contributions of each national central banks to the ECB. Each central bank also potra ‘buy assets of jurisdiction of their own country and can be purchased government bonds with remaining maturity between 2 and 30 years, the return on which is lower than the rate on deposits (at this time -0.2 %). This indicatio n and ‘particularly important’ cause widens significantly the composition of the market from which the ECB may ‘fish when that threshold is still far for the vast majority of the assets in the market. Reiterating what already ‘announced in January, the ECB also provides that securities may also be purchased for a nominal value not exceeding 25% of any one issue, while the overall share of securities purchased for each issuer can not’ exceed 33% .

Cop

(RADIOCOR) 05-03-15 18:40:12 (0535) 3 NNNN