After disappointing markets in December 2015, European Central Bank's (ECB) president Mario Draghi managed to surprise investors at his March meeting.
He added investment grade euro-denominated corporate bonds to the ECB's asset purchasing programme and increased the monthly purchases to €80bn from €60bn. Although Draghi will not go shopping for corporate bonds till June, the inclusion of corporate bonds in the asset purchasing programme should provide support for euro credit. Many investors reacted by seeking exposure to global credit - in March alone, credit exchange traded products saw ten times the average monthly flows with a monthly high of $3.9bn in inflows. Further support for euro credit is likely for two reasons. Firstl...
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