2015-02-18bloomberg.com

``A dearth of new supply and a lack of willing sellers. Morgan Stanley estimates net issuance from governments will be negative for the first time, once the ECB's plan is taken into account. The resulting scarcity makes hoarding of the safest euro-area securities by banks, insurers and pension funds all but inevitable, hindering ECB efforts to buy in 19 months roughly the same proportion of those bonds as the Federal Reserve accumulated in almost six years of Treasuries purchases. "If it becomes at all clear that the ECB is struggling to buy a sufficient quantity of bonds, it makes it even less likely that anybody will want to sell," said Michael Riddell, a money manager at M&G Group Plc, who also said he'd been telling clients the ECB may have difficulty with its purchases. "This would scupper their attempts to boost inflation," he said. London-based M&G oversees the equivalent of $395 billion.''



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