Special Update: ECB

logo shape onlyThe Wall Street Journal reported that during tomorrow’s European Central Bank (ECB) meeting the executive board of the ECB will recommend to the entire 25-member governing council a plan to begin a sovereign bond purchase program. The plan, which would be similar to the quantitative easing (QE) program used by the US Fed in recent years, would call for purchases of 50 billion euros (about $58 billion) per month for a minimum of one year. These figures are roughly in line with investor expectations, and the reaction in MBS markets has been small so far. If the governing council adopts this plan tomorrow, the impact on MBS may be small.

 

2017-12-20T17:34:11+00:00 January 21st, 2015|Categories: Special Update|Tags: , , , , , |