The Impact of the Eurosystem's Covered Bond Purchase Programme on the Primary and Secondary Markets
By J. Beirne, Lars Dalitz, Jacob Ejsing, Magdalena Grothe, Simone Manganelli, Fernando Monar, Benjamin Sahel, Matjaž Sušec, Jens Tapking, Tana Vong. Social Science Research Network, 2011
119 citations recorded by the source corpus.
This paper provides an assessment of the impact of the covered bond purchase programme (hereafter referred to as the CBPP) relative to its policy objectives. The analysis presented on the impact of the CBPP on both the primary and secondary bond markets indicates that the Programme has been an effective policy instrument. It has contributed to: (i) a decline in money market term rates, (ii) an easing of funding conditions for credit institutions and enterprises, (iii) encouraging credit institutions to maintain and expand their lending to clients, and (iv) improving market liquidity in important segments of the private debt securities market. The paper also provides an overview of the investment strategy of the the Eurosystem with regard to the CBPP portfolio. JEL Classification: E22, L63, L86, O3, O47
Subfields: Finance
View Paper: https://www.semanticscholar.org/paper/2d95852786e6c011f1cb59e1feb5baa5d1cb41ff
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Citations in the corpus
- The ECB Unconventional Monetary Policies: Have They Lowered Market Borrowing Costs for Banks and Governments? (2012, methodology): “Beirne et al. (2011) evaluated via an event study the impact of the first covered bond purchasing program and found that it was effective in lowering covered bond spreads.”
- Four stories of quantitative easing (2013, background): “24 By early 2009 lack of confidence in banks had dried up interbank lending (Beirne et al., 2011).”
- Uncovering the heterogeneous effects of ECB unconventional monetary policies across euro area countries (2016, background): “Beirne et al. (2011) analyze the effects of the covered bond purchase programme (CBPP) on both the primary and secondary bond markets and find that it has contributed to a decline in money market term rates and to improve market liquidity in important segments of the private debt securities market.”