The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

First look at ECB PEPP debt-buying shows massive support for CP

The European Central Bank's purchase of more than €35 billion of commercial paper since late March shows just how rocky the early stages of the Covid-19 crisis were for short-term funding.

ECB-HQ-dawn-dusk-R-780.jpg

Markets got their first glimpse on Tuesday, June 2, of just what the European Central Bank has been so busy buying in its Pandemic Emergency Purchase Programme (PEPP), a €750 billion scheme set up by the ECB in March to help maintain monetary policy transmission in the face of the economic chaos caused by government responses to the coronavirus pandemic.

While most purchases so far are of sovereign debt, as expected, the striking finding is that most of the private sector debt that the bank bought – some 76% of the €46 billion total in that segment  – was in the commercial paper (CP) market. Within that, some 81% – a total of €28.7

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree