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By Bilal Hafeez 20-05-2020
In: post | Newsletter

Deep Dive: ECB QE Spillovers + Podcast Guest Questions

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(total reading time: 2 mins)

This past week, there’s been renewed focus on Europe with talk of an EU recovery fund. European stocks and bonds have both rallied on the news. This follows the ECB’s various expanding QE and LTRO programmes. Coincidently, the ECB has just published a paper analyzing the flow implications of the ECB’s last QE programme. They found that it led to significant outflows from the Euro-area, which suggests that what happens in Euro-area policy has global implications. For the Deep Dive on the paper, click here.

I also have former Argentina FinMin and Central Banker Governor, Alfonso Prat-Gay, as a podcast guest tomorrow. Let me know any questions you want me to ask!

Finally, check out our latest COVID tracker – Latam is still in the hot zone.



Quantitative Easing


Spillovers From ECB QE – Global Yet Varied (4 min read) Central bank bond buying has accelerated at an unprecedented pace during the COVID crisis. The impact of large asset purchases on home markets is generally well understood, but the global spillovers are less clear. New research by the ECB, which for the first time uses data on an individual security level, provides a detailed insight into the impact of the first two years of the bank’s Public Sector Purchase Programme (PSPP) during 2015-16. Given the €6bn now purchased daily under the ECB’s new €750bn Pandemic Emergency Purchase Programme (PEPP) and the resumption of PSPP on an opened-ended basis late last year, the results are highly relevant for current capital flows and sectoral portfolio shifts…

(Caroline Grady │ 20th May, 2020)


Hive Indicators

Global COVID-19 Tracker In the DM world, no major increases in cases or deaths, except for Japan, which saw a 3% increase in deaths. However, the Economy Minister feels confident the nation is on a path towards containing the virus

(Bilal Hafeez, Stefan Posea│ 20th May, 2020)


Coronavirus Update




(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)