- Yesterday, the ECB more than satisfied market expectations by announcing a 10bp cut in all official rates (refi rate @ 0.05%, depo rate @ -0.20%, marginal lending rate @ 0.30% - now officially at their lower bound, so no further rate cuts will be delivered) and the introduction of two asset purchase programmes starting in October: the ABSPP (aimed at buying simple ABSs with underlying assets consisting of claims against the Euro area non-financial private sector) and the CBPP3 (designed to purchase euro-denominated covered bonds issued by EUR MFIs). We will comment on the implications of these decisions in the next class.
Showing posts with label ecb. Show all posts
Showing posts with label ecb. Show all posts
Friday, September 5, 2014
Varia - things that I find interesting
- Traditionally, we've been taught that in Finance risk equals volatility (standard deviation). Have a look at the recent letter to investors from Howard Marks to have a slightly different view.
- Yesterday, the ECB more than satisfied market expectations by announcing a 10bp cut in all official rates (refi rate @ 0.05%, depo rate @ -0.20%, marginal lending rate @ 0.30% - now officially at their lower bound, so no further rate cuts will be delivered) and the introduction of two asset purchase programmes starting in October: the ABSPP (aimed at buying simple ABSs with underlying assets consisting of claims against the Euro area non-financial private sector) and the CBPP3 (designed to purchase euro-denominated covered bonds issued by EUR MFIs). We will comment on the implications of these decisions in the next class.
- Yesterday, the ECB more than satisfied market expectations by announcing a 10bp cut in all official rates (refi rate @ 0.05%, depo rate @ -0.20%, marginal lending rate @ 0.30% - now officially at their lower bound, so no further rate cuts will be delivered) and the introduction of two asset purchase programmes starting in October: the ABSPP (aimed at buying simple ABSs with underlying assets consisting of claims against the Euro area non-financial private sector) and the CBPP3 (designed to purchase euro-denominated covered bonds issued by EUR MFIs). We will comment on the implications of these decisions in the next class.
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