CSPP-Eligible Bonds Outperforming Their Ineligible Counterparts: Goldman Sachs

Since the European Central Bank started its purchases on June 8, Corporate Sector Purchase Program (CSPP) eligible bonds have been outperforming their non-bank ineligible counterparts, reports Goldman Sachs. Lotfi Karoui and colleagues examine the impact of the CSPP program on the secondary market in their July 13 research piece titled “The CSPP, one month on: Quantifying the market impact.”

Outperformance of CSPP-eligible bonds pool reflects price impact of ECB purchases

As detailed by ValueWalk, Bank of America Merrill Lynch analysts predicted in their April 21 report that the effects of the ECB’s corporate bond buying spree could be the equivalent of quantitative easing for the world. The BAML analysts believed that the ECB’s CSPP is a long-term commitment to ensure...