Pimco Head of Research says ECB Should Try Buying NPLs

A stagnant economy and a fragile banking sector could be fixed with the European Central Bank (ECB) buying up toxic assets seen in peripheral nations like Italy, according to Philippe Bodereau, the global head of financial research at Pimco.

“I think there is a very easy solution to this problem,” he told CNBC Tuesday.

“The ECB is obviously looking for assets to buy. They will be running out of assets to buy as part of their QE (quantitative easing) program at some point early next year. The most impactful thing they could do, in my mind in Europe today, would be to buy NPLs (non-performing loans).”

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