HALISTER1: ECB Bond Buying Program a Boon for Corporate Bonds: BlackRock

ECB Bond Buying Program a Boon for Corporate Bonds: BlackRock

(Bloomberg) -- Global corporate bond spreads are set to tighten further, driven by ECB asset purchases, BlackRock’s global chief investment strategist Richard Turnill writes in note.
  • Sees further spread compression, based on BlackRock’s expectations for the ECB to extend its asset purchases
  • Sees an extension of the March end-point for ECB’s QE program as more likely than an increase in the size of monthly purchases or a lowering of interest rates below the current -0.40% deposit rate
  • Sees opportunities in euro-zone peripheral government bonds, also likes selected European corporate bonds such as those of technology and pharmaceutical firms
  • RELATED:
    • Earlier: Case for ECB QE Extension Builds After German IP Data: Scotia
    • Sept. 5: ECB PREVIEW: Draghi Disappointing Easing Hopes May Rattle Rates
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
2539Z GR (European Central Bank)

People
Richard Turnill (BlackRock Inc)

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