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ECB Releases Full Details Of Its "Private QE" Program
As Mario Draghi promised, here are the full details of the ECB's asset-backed securities and covered bond purchase programs, as prepped by Blackrock.
ECB announces operational details of asset-backed securities and covered bond purchase programmes
- Programmes will last at least two years
- Will enhance transmission of monetary policy, support provision of credit to the euro area economy and, as a result, provide further monetary policy accommodation
- Eurosystem collateral framework is guiding principle for eligibility of assets for purchase
- Asset purchases to start in fourth quarter 2014, starting with covered bonds in second-half of October
The Governing Council of the European Central Bank (ECB) today agreed key details regarding the operation of its new programmes to buy simple and transparent asset-backed securities (ABSs) and a broad portfolio of euro-denominated covered bonds. Together with the targeted longer-term refinancing operations, the purchase programmes will further enhance the transmission of monetary policy. They will facilitate credit provision to the euro area economy, generate positive spill-overs to other markets and, as a result, ease the ECB’s monetary policy stance. These measures will have a sizeable impact on the Eurosystem’s balance sheet and will contribute to a return of inflation rates to levels closer to 2%.
The Eurosystem’s collateral framework – the rules that lay out which assets are acceptable as collateral for monetary policy credit operations – will be the guiding principle for deciding the eligibility of assets to be bought under the ABS purchase programme (ABSPP) and covered bond purchase programme (CBPP3). There will be some adjustments to take into account the difference between accepting assets as collateral and buying assets outright. To ensure that the programmes can include the whole euro area, ABSs and covered bonds from Greece and Cyprus that are currently not eligible as collateral for monetary policy operations will be subject to specific rules with risk-mitigating measures.
The two programmes will last for at least two years and are likely to have a stimulating effect on issuance. Asset purchases will commence in the fourth quarter of 2014, starting with covered bonds in the second half of October. The ABSPP will start after external service providers have been selected, following an ongoing procurement process.
Further technical details on the ABSPP are provided in Annex 1 of this press release and on CBPP3 in Annex 2.
Annex 1: Asset-Backed Securities Purchase Programme (ABSPP)
Annex 2: Covered Bond Purchase Programme (CBPP3)
* * *
Of course, none of the noted "spillovers" will ever take place, and instead we will merely get more of this type of headline: "Bond Investors Gifted Best ABS Returns in 20 Months by ECB"
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TWO YEARS? Will Europe be together after two more years of banks stealing everything that is not nailed down?
I say Germans last less than two months with this BS.
Moar like two hours..
"Full details"......now that's funny
IOW..
“We will continue to do whatever it takes to pollute the marketplace with fraud.”
Private QE means we bail out our bankster buddies and fuck our citizens.
Hey Eurowimps, when are you going to grow a pair and start using your guillotines?
I’ll say it again..
Beheading is getting back in vogue..
Party like it’s 1799.
MOAR FRee Fiats MONEY For UBER-Rich Connected Bankers ??????
remember that it's the same guys that want the ECB to monetize/QE that sneeringly call this future/planned program "Private QE"
to your question: when are we going to have higher prices in the eurozone?
Step 1- Print money
Step 2- Buy any Rothschild* assets at risk of losing value.
tough luck to the rest of you.
* The term Rothschild is used to denote anyone connected to the ruling elite, it is not meant to defame any particular banker-scum family
the term Rothschild used to denote the Bank of England, before nationalization
They were able to scam the Scottish referendum pretty easily.
Scotland is in the UK, not the eurozone. and please explain to me how you scam an oldfashioned paper ballot
http://www.youtube.com/watch?v=ZzpY41YLRkM
Who is counting those ballots?
volunteers from all parties and interests. bless 'em
If they told us they were going to sacrifice a virgin during a full moon while chanting the lyrics to in-a-gadda-da-vida I would find it both more clear and more believable.
Private QE = Picking winners and dumping losers
Kind of like Bear stearns and lehman
French investors not liking ECB QE: CAC down 1.4%:
http://www.investing.com/indices/us-30-futures-advanced-chart
Oooops, futures now down 1.7%.
Suure... Putin wants to sell his gas for Euros! lol
A wicked storm is coming .....
More like a bad moon rising...
https://www.youtube.com/watch?feature=player_detailpage&v=5BmEGm-mraE
Lee Harvey Oswald Quietly Added To CIA Memorial Wall
Startled employees of the Central Intelligence Agency discovered this morning that Lee Harvey Oswald had been quietly added to the memorial wall at CIA Headquarters. Oswald is widely believed to have assassinated U.S. President John F. Kennedy, or someone dressed like him, in Dallas in 1963.
The action does not appear to have been a prank. As of press time the extra star was still there, along with Oswald’s name listed in the memorial book, located between entries for fallen agents Felix Leiter and Charles Calthrop.
A spokesman from the CIA refused to comment or elaborate on why the agency has added Oswald’s name to the memorial, only saying that after 50 years several documents had been declassified, which have “finally allowed the Agency to set the record straight.”
"or someone dressed like him" lol
Using the public treasury to buy bankster assets.
How is this good for a family again Mario?
interesting point of view. the ECB belongs to the national banks. but it isn't part of the national treasuries. anyway, he hasn't bought even one asset, yet, neither banster's nor otherwise, and France & Germany are already shooting down several tranches of the unveiled programs, so... we'll see what he's really going to buy, in November
Two years? Yeah right. Something tells me we will be living in a much much different world in two years
This gives the FED 2 years off. Then the ECB will stop and the FED will start. Rinse and repeat.
i would call it a corporate QE programm.
fuck them!
The Draghi press conferences are starting to look more and more like "Tijuana donkey shows" every month.
All the donkey shit after the show gets collected and used as collateral for their "Asset Backed Securities" farce.
There’s the old adage, “You get what you pay for”.
Consequently, you know your money is worth less when it’s used to buy shit.
how much are they buying?
The real issue with QE is if you have not corrected the problem that got you into the position to begin with you just start supplying the addict with the drug in this case money. Then you are unable to stop without consequences even the USA is struggling to do although the UK government has been more sneaky hiding it in the leverage on loans. Go check Merv the Swerv before Carney took office at the BOE and his quick fix so Carney did not have to do outright QE early on although from what I can see of the UK economy it has flatlined even with this fix.
QE is pointless while the system remains broken.