Draghi on ABS – Hard to give a figure on this program via ForexLive

• Full details to be released after press conference
• The overall impact of purchases and TLTRO's to be significant
• Purchase guidelines will be similar to collateral rules
• Purchase programs is oriented at boosting lending (what if there's no demand?)
• ECB will not buy structured ABS
• Wants ABS to be as inclusive as possible while being prudent
• ECB has included countries with ABS below BBB-
• Assets from Greece, Cyprus risk equivalent to elsewhere, lower rated countries need EU program to qualify
• Exchange rate not policy target
• FX important for growth, Euro drop reflects different business cycles

So lower rated countries will have to jump through a few hoops to be included in the ABS purchases

posted via ForexLive