ECB: Officially launched its corporate bond buying program - BBH

Research Team at BBH, notes that the ECB has officially launched its corporate bond buying program which will provide overall holdings every Monday, while the details of its holdings will be published monthly starting July 18. 

Key Quotes

“The program is expected to begin off gradually and increase over time.  Given liquidity conditions, purchases are expected to be below five bln euros a month, at least at the beginning.  Purchasing less than three bln euros a month would be seen as disappointing, according to some market participants.  Some see the drop in the average German yield into negative territory, and the record low 10-year bund yield, as evidence of a shortage of German paper. 

On the other hand, part of the demand for German bunds may also be tied to the angst surrounding the UK referendum.  German assets ostensibly may also serve as a call option amid fears that a Brexit vote could spark an EMU crisis.”