Europe’s €750 billion pandemic emergency plan

Europe’s €750 billion pandemic emergency plan

The Governing Council of the ECB had emergency meeting yesterday and decided to create a new relief program that will run to at least the end of 2020. Its initial size is EUR 750 billion – or over 6% of the Euro-zone GDP. The ECB policy will try to offset some of the negative effects of the COVID-19 emergency. The asset purchases will cover both public and private bonds that are qualifying under the current purchasing programs of the Central Bank. This aggressive purchasing of debt will likely depress yields of high-quality bonds and will all but freeze financing to more risky operations. I those conditions product like Deriveum is vital to support the transmission of financing from the low-to-negative-yield part of the curve to the higher-yield investments.

For more information on the ECB’s decision please check the link below.


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