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Central Banking Off Its Rocker—-Mario Draghi Is Now Buying Junk Bonds
06-09-2016, 04:30 PM,
#1
Central Banking Off Its Rocker—-Mario Draghi Is Now Buying Junk Bonds
Central Banking Off Its Rocker—-Mario Draghi Is Now Buying Junk Bonds

A few days after the ECB unexpectedly announced its CSPP, or corporate bond buying program which based on its definition was limited to investment grade, non-financial debt, we explained "Why The ECB Will Be Forced To Buy Junk Bonds", saying that "the reasons to believe Draghi will take the plunge into non-IG corporate credit go beyond the “MOAR is always better” line. As BofAML’s Barnaby Martin explains, the EU corporate sector’s penchant for bond buybacks may ultimately force Draghi further down the ratings ladder lest the ECB should end up entangled tender offers or else end up without enough debt to monetize."


http://davidstockmanscontracorner.com/ce...unk-bonds/
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