Search Results for QE

European banks after QE withdrawal

How Will The End To QE Affect European Banks?

The ECB will stop injecting liquidity into the system next December. This leaves Eurozone banks in a slightly odd situation: returning to “normality” after years of atypical measures. The withdrawal of QE will have different impacts on different countries, depending on the characteristics of the models of their banking business.

The paradox of the ECB long-term refinancing operations

The QE Is Very Probably Dead

The ECB’s chairman endorsed the optimistic staff forecast enough to justify the end of QE for December 2018 and then spent the rest of the press conference insisting on the downside risks. This was the only way that BoAML’ s analysts find to deliver what they think about Mario Draghi’s main challenge: making sure that there would not be any continuum in the market perceptions between the end of the net purchases and a brisk pace of normalisation on rates.

ECB stimulus package

ECB: Ending The QE Chapter With Italy “On Its Own”

The ECB could announce a short taper to December current week. The central bank has to be consistent if QE is ending this year and, hence, according to BoAML’s analysts it has to send a reaffirming message on three criteria: convergence, confidence, resilience.

fund flows in 2016

Follow The Fund flows in 2016: QE in the driving seat

BoAML | QE drove fund flows in 2016, but the past two months was all about reversing this trend. All-in-all, commodities, EM debt and IG were the winners; equities and HY the losers. For example, last week’s flows HG: +$1.6bn / HY: +$1.1bn / Equities: -$40mn

QE printing euros

QE Comes Of Age

BoAML | The last few months have been jammed with corporate bond issuance in Europe: refinancing deals, M&A supply, foreign issuers, debut names and unrated bonds, for instance. Mario Draghi spoke highly of the Corporate Sector Purchase Programme at the last ECB meeting, and we think it reflects precisely this. The central bank has been able to quickly generate corporate bond supply (and buy it), helping to counter the frustrations with low sovereign debt issuance.

The Effect Of QE On Corporate Debt: More Speculation, Not Investment

Now the most important companies can finance themselves at the same price as the government – at practically 0% – and they have benefited from this…But it doesn’t mean that these optimal conditions are fuelling a greater amount of real investment: companies have taken advantage of this to pay more dividends and reward shareholders with buybacks.