19.01.2021 | Petr Surala, CAIA | Video

ECB’s Funding Programs as COVID-19 Countermeasures

ECB introduced and initiated Asset Purchase Program (APP) as a part of a package of non-standard monetary policy measures in summer 2014. Since then it helped ECB to channel funds to the real economy as a part of QE and now, it will use the very same mechanism to battle COVID-19 damages. Let us take a look together at how the funding options have changed so that the market can leverage them to the maximum extent possible. We will review the ABS purchase program to see how banks can place existing securitization with the ECB or structure new ones, eligible with the program's purchase criteria. We will also look at the youngest ECB’s initiative - Corporate Sector Purchase Program and discuss how private entities can leverage this opportunity to gain access to further market liquidity.