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

Also interesting

EU flag green
July 26, 2021
Focal Point

ECB greening of the credit market to start in 2022

triple peak
July 23, 2021
Market Perspectives

Market Perspectives ǀ Overfretting about the triple peak

European-Central-Bank-in-Frankfurt_web
July 22, 2021
Market Commentary

ECB sends a dovish message as new strategy increases threshold for raising rates