ECB VP Says 400 Billion Euros of ABS Qualify for Purchase

Euro zone inflation slowed to 0.3 percent last month – far below the ECB’s target level of just under 2 percent over the medium term.

Turning to the ECB’s plans to buy private sector assets, Constancio said the stock of covered bonds eligible for purchase by the central bank amounted to about 600 billion euros.

Around 400 billion euros ($506 billion) of asset-backed securities (ABS) qualify for purchase by the ECB under its new plan, he added.

“We are, of course, aware that the amounts that we will be able to buy will be lower than the theoretical amount,” he said.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza