20
Mar
ECB to inject 750 billion into new plan (PEPP)
Massive injections of liquidity. Trend reversal on long-term rates. Monetisation of new government debt. Opportunities in equities and real estate.
Key points
- ECB announces new 750 billion PEPP to support the EU’s economy
- An essential action given the considerable risks of economic collapse
- ECB to reassure markets on quality of periphery countries’ debt
- Trend reversal on long-term rates
- Long-term steepening of the yield curve?
- Monetisation of public deficits, inflation and real yields
- Euro is not a safe-haven currency
- European equities and securitised real estate offer investment prospects
