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’Here be Draghi, on ECB collateral [updated]
Some interesting points about the ECB’s expansion of the collateral it will accept for funding at February’s three-year LTRO, plus a bit on its Greek bonds, from ECB President Mario Draghi at pixel time…
@MarioDraghiECB — or not
The financial twittersphere was abuzz on Tuesday over an odd new user — one @MarioDraghiECB:
‘Real tragedy’ — golly. It would be news to markets if the European Central Bank president was firing off thoughts like that from his “Official Twitter Account”.
The curious case of ECB deposits
Bank of America Merrill Lynch analysts have taken objection to everyone interpreting high use of the ECB’s overnight deposit facility as an indicator of ‘bank hoarding’.
It is just not so, they say.
Mario explains himself
We all wondered what was really behind those new non-standard ECB measures announced by Mario Draghi two weeks ago.
Thankfully, Draghi has finally explained himself in more detail (via a speech in Brussels this week).
Stark and Draghi on the haters
Jürgen Stark told Germany’s WirtschaftsWoche magazine what had already been guessed at — he decided to step down from the ECB not because of “personal reasons”, but because he didn’t like the bond-buying programme.
Let there be credit claim collateral
OK — you’re sick to death of hearing about the European Central Bank’s three-year liquidity may, or may not, get banks to buy sovereign debt to pledge as collateral.
So why not hear about all the other extra trash assets the ECB will now accept? Potentially much more economically critical trash.
The ECB’s new non-standard measures…
Here they are (via Reuters):
Today 13:31 – ECB’S DRAGHI – UNDERLYING PACE OF MONETARY EXPANSION CONTINUES TO BE MODERATE
Today 13:32 – DRAGHI-COST PRESSURES SHOULD REMAIN MODEST OVER POLICY RELEVANT
Hors d’oeuvres from the ECB
We now await the main course.
What will Chef Draghi offer us? A three-year LTRO? Or what about a wider pool of collateral for your delectation? ECB bills?
Tune it at 1.30pm (GMT):
While you wait for the gastronomique feast,
What ECB QE could look like
Oh Mario, you big tease. From the FT on Thursday:
Mario Draghi, European Central Bank president, has called for a “fiscal compact” between governments to restore investor confidence in the eurozone – and hinted such a step could pave the way for a more aggressive ECB response to the region’s debt crisis.
Draghi’s fiscal compact
Mario Draghi’s speech to the European parliament on Thursday wasn’t just notable for what he had to say about the scarcity of eligible collateral and the impaired transmission mechanism for monetary policy.
Draghi: “We are aware of the scarcity of eligible collateral”
The ECB’s Mario Draghi gave a speech to the European Parliament on Thursday, making some of the following key points:
RTRS – DRAGHI-DOWNSIDE RISKS TO ECONOMIC OUTLOOK HAVE INCREASED
RTRS – DRAGHI-ECB TEMPORARY MEASURES ONLY LIMITED
RTRS – DRAGHI-ECB AWARE OF CONTINUING DIFFICULTIES ON BANKS
RTRS – DRAGHI-AWARE OF MATURITY MISMATCHES,
Eurozone at breakpoint
We have been waiting for this – the RBS report on eurozone debt crisis, policy options and end game scenarios.
And it doesn’t disappoint.
The RBS team, lead by chief economist Jacques Cailloux, reckons the Euro area is at ‘breakpoint’,
Draghi’s disclosures
What fun.
The frontrunner for the next European Central Bank head — the Bank of Italy’s Mario Draghi — has published his CV and answers to a questionnaire, as part of written evidence to the European Parliament in support of his application.
Subprime Italy?
Italy is facing a two-pronged crisis.
First there’s the fiscal crisis, heightened by waning appetite for Italian bond issues in the face of expected government issuance of up to €260bn this year. Then there’s the current incubation of future bad debt,