FIG hit as ECB takes the safe option

Bill Thornhill,

Frank Jackman, Lewis McLellan, Mike Turner

December 10, 2020 07:00 PM

Christine_Lagarde_PA_55x375_051120 — FILED - 23 January 2020, Hessen, Frankfurt/Main: Christine Lagarde, President of the European Central Bank (ECB), speaks at one of the ECB's regular press conferences. The ECB has announced a ·750 billion emergency bond purchase programme to combat the economic consequences of the coronavirus pandemic. This is to involve government and corporate bonds. The programme will be terminated as soon as the ECB's Governing Council considers the corona crisis to be over, but not before the end of the year, the statement continued. Photo: Boris Roessler/dpa | Boris Roessler/DPA/PA Images

The European Central Bank failed to provide the “big bazooka” that some capital market participants were hoping for at its meeting on Thursday. But the central bank did show its willingness to continue financing bank lending until the economy starts to recover, suggesting that FIG supply volumes face another difficult year in 2021.

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Topics

Europe EMEA FIG Covered Bonds

BT

Bill Thornhill

FJ

Frank Jackman

Covered Bond Editor

LM

Lewis McLellan

MT

Mike Turner

Corporate Debt Editor