Even as the NATO summit began hours ago in Wales, conveniently enough (for Obama) at the venue of the 2010 Ryder Cup, so far today geopolitics has taken a backseat to the biggest event of the day – the ECB’s much hyped and anticipated announcement. So anticipated in fact that even as it has been priced in for the past month, especially by BlackRock which is already calculating the Christmas bonus on its “consultancy” in implementing the ECB’s ABS purchasing program and manifesting itself in record low yields across Europe’s bond market, Reuters decided to milk it some more moments ago with the following blast:
Plans to launch an asset-backed securities (ABS) and covered bond purchase programme worth up to 500 billion euros are on the table at Thursday’s European Central Bank policy meeting, people familiar with the discussions say. ECB President Mario Draghi will likely announce such a programme at his news conference unless it comes up against strong opposition at the Governing Council’s policy meeting. The programme would have a duration of three years and comprise both ABS and covered bond purchases. The ECB could begin buying the assets this year, the people familiar with the discussions told Reuters.
The ECB declined to comment.
The notable being the size of the program, which at 500 billion, is precisely what Deutsche Bank said a week ago the size of the ABS program would be. Almost as if the bank with the world’s biggest derivative exposure is helping coordinate the “Private QE”…
This post was published at Zero Hedge on 09/04/2014.
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