A Shocking Admission From The ECB: “We Are Concerned About The Shrinking Pool Of Eligible Debt”…(Brace For Impact)
by Tyler Durden
ZeroHedge.com
Jun 30, 2016
Back in April of 2015 in a post titled “Mario Draghi, Collateral Scarcity, And Why The ECB Will Soon Buy Corporate Bonds”, we explained not only why, one year before it was unveiled, the ECB would buy bonds, but why in Europe’s highly supply constrained bond market, Mario Draghi would not only have to expand his central bank’s collateral pool, as it runs out of eligible bonds, but may have to do even more QE. Well, in March the ECB indeed announced the monetization of corporate bonds, and moments ago, in a shocking admission, Mario Draghi admitted precisely what we had warned about:
ECB SAID TO WEIGH LOOSER QE RULES AS BREXIT DEPLETES ASSET POOL
ECB OPTIONS SAID TO INCLUDE MOVING AWAY FROM QE CAPITAL KEY
ECB SAID TO BE CONCERNED ABOUT SHRINKING POOL OF ELIGIBLE DEBT
Just as we warned.
The Rest…HERE
