- 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
