The Traderszone Network

Published in TZ Latest News 9 March, 2015 by The TZ Newswire Staff

"Size Matters" For ECB Which Runs Into Unexpected Monetization Problem

Mario Draghi’s PSPP is just barely off the ground and we’re already beginning to get answers to some of the tough questions the ECB faced regarding the program’s implementation. For instance, we wondered how the central bank intended to treat the losses it was bound to incur as a result of purchasing billions in EMU debt carrying a negative yield. The answer: try to avoid that paper for the time being. 

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