European Central Bank (ECB) staff presented policy makers withmodels for buying as much as 500 billion euros (US$591 billion) ofinvestment-grade assets, according to a person who attended ameeting of the Governing Council.

Various quantitative-easing (QE) options focused on governmentbonds were shown to governors on Jan. 7 in Frankfurt, includingbuying only AAA-rated debt or bonds rated at least BBB minus, theeuro-area central bank official said. Governors took no decision onthe design or implementation of any package after the presentation,according to the person and another official who attended themeeting. The people asked not to be identified because the talkswere private.

A 500 billion-euro purchase program would take the ECB halfwaytoward its goal of boosting its balance sheet to avert adeflationary spiral in the euro area. The institution is alsobuying asset-backed securities and covered bonds, and governmentbond-buying would be part of fresh stimulus to be considered at theGoverning Council's Jan. 22 meeting.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.