- The European Central Bank has announced that APP purchases will slow down, after a small increase, to ease the discontinuation of PEPP and will likely end in the third quarter.
- This faster taper and an end to the Corporate Sector Purchase Programme in Q3 will reduce the technical strength in European credit markets.
- We continue to expect supply to drop this year to between €250-290bn, whilst redemptions are pencilled in higher at €223bn; therefore, net supply will drop considerably to just €27-67bn.
For further details see:
Faster Tapering Means Less Strength In Credit's Technical Picture