Spread bet

26 January 2015 By Neil Unmack Follow @unmack1

Banking union and the promise of QE closed the gap between borrowing costs in the euro zone’s core and periphery in 2014, data shows. Now bond-buying is here, credit availability in southern Europe should pick up. But recovery requires a recent rally in demand to persist.

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The European Central Bank said on Jan. 22 it would buy 60 billion euros of bonds a month, including debt issued by governments.

The move comes after the ECB last year started buying private assets, including asset-backed securities, and launched a series of four-year loans, called targeted longer-term refinancing operations.

Bank of America Merrill Lynch is selling 286 million euros of bonds backed by Italian property loans, issued through Taurus 2015-1. Banca IMI and Cairn Capital priced a 203 million euro securitisation of Italian commercial property debt on Jan. 22, called Tibet CMBS.

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