ECB Corporate Bond Purchases: What's The Deal?

The European Central Bank’s Corporate Sector Purchase Programme (CSPP) has now been in operation for more than a month, and analysts have had time to go through the data to see what Mario Draghi’s ‘whatever it takes’ attitude really means.

Bank of America’s credit strategist Barnaby Martin weighs in on the programme in a note to clients published this morning.

QE: The Good, Bad And Ugly

ECB corporate purchases: What’s the deal?

It seems that the data available from the ECB regarding the CSPP shows that Draghi does mean business. But far from being a good thing, Bank of America’s credit team believes that this big ‘bazooka’ could be too much. Indeed, in just over a month of operation, the ECB has...