European Central Banks Disclose Which Corporate Bonds They Own

Earlier today, alongside the ECB's latest weekly disclosure of total corporate bond purchases under the CSPP program, which as of July 15 had risen by approximately €2 billion to €10.427 billion, suggesting a daily purchase pace of about €400 million, Europe's various regional central banks also disclosed for the first time the CUSIP list of which specific bonds they had purchased over the past month and a half.

Of these, the most interesting report belonged to the ECB because alongside the CUSIPs, the German central banks also disclosed the names of the companies whose bonds it has subsidized.

As disclosed in the Bundesbank's list which reveals which newly acquired holdings will be eligible for lending under with the Automated Securities Lending (ASL) program or the ASL plus program, the Bundesbank now holds bonds from at least 42 different issuers, sorted alphabetically as follows:

  • Allianz Finance II B.V.
  • Alstria Office Reit-AG
  • BASF
  • Bayer AG
  • Bayer Capital Corp BV
  • Bertelsmann Se & Co Kgaa
  • BMW Finance Nv
  • Continental AG
  • Covestro AG
  • Daimler AG
  • Deutsche Bahn Finance BV
  • Deutsche Boerse AG
  • Deutsche Lufthansa AG
  • Deutsche Post AG
  • Deutsche Telekom Int Fin
  • Deutsche Wohnen AG
  • E.On Intl Finance BV
  • Enbw Intl Finance BV
  • Eurogrid Gmbh
  • Evonik Industries AG
  • Ewe AG
  • Hella Kgaa Hueck & Co
  • Infineon Technologies AG
  • K+S AG
  • Lanxess AG
  • Linde AG
  • Linde Finance BV
  • Man SE
  • Merck Fin Services Gmbh
  • Metro AG
  • Metro Finance BV
  • Robert Bosch Gmbh
  • Robert Bosch Investment
  • Rwe Finance BV
  • Sap SE
  • Siemens Financieringsmat
  • Talanx AG
  • Telfonica Deutsch Finan
  • Vier Gas Transport Gmbh
  • VolkswAGen Intl Fin Nv
  • Vonovia Finance BV
  • Wuerth Finance Intl BV

The complete Bundesbank list is showing below (source).

Finally, those looking for other European central bank holdings, they can be found at the following links:

One quick comment: with the ECB now an activist investor in the above names, it is safe to say that one can keep purchasing these bonds without fear of fundamental risk. The Bundesbank (and ECB) will never allow them to drop so much as to impair the central banks' own balance sheets. And while it remains unclear what happens in case a given bond is downgraded to junk by all the appropriate rating agencies, we are confident Draghi will find a loophole to hold on to them.

In other words, when it comes to the above subsidized corporations, there is now only return - the risk has been eliminated, and is instead offset by promises of even more monetary printing in the future to cover up any potential shortfalls.