Sentences with phrase «sovereign bond purchases»

The formation of the European Stability Mechanism1 and regional banking union, coupled with the introduction of policy tools like Outright Monetary Transactions2 and sovereign bond purchases through quantitative easing, should make Europe far more resistant to contagion than it was during the initial phases of the regional sovereign debt crisis, in our view.

The next phase - sovereign bond purchases - is going to begin to come into view.

The European Central Bank (ECB), which has been providing stimulus to the region through negative interest rates and massive sovereign bond purchases, is adjusting to the economy's stronger pace.

Not exact matches

HONG KONG — In 2012, with help from Goldman Sachs, a Malaysian sovereign wealth fund called 1Malaysia Development Berhad sold $ 3.5 billion worth of bonds backed by an Abu Dhabi government fund to help it purchase power plants.

In response, some central banks have turned to unconventional tools like quantitative easing (QE), where a central bank purchases sovereign bonds in an effort to drive down interest rates and drive up consumer spending and capital investment.

To save it, he added, his bank would undertake unlimited purchases of sovereign bonds should it become necessary.

Just because there is a rule stipulating that QE program purchases of sovereign bonds be in relation to GDP, the ECB has and will continue to do «whatever it takes» in order to prevent peripheral Eurozone bond yields from blowing out to near - reality levels.

The financing needs coming due in the first quarter «imply that euro area banks will not have extra money as a result of the three - year auction to purchase European sovereign bonds, using a carry - trade strategy, because the amount of fresh cash is less than the amount of bank debt that will mature during the quarter», Powell wrote recently.

The ECB could potentially purchase Greek sovereign bonds down the road — assuming Greece remains faithful to the outlines of its reform program — as part of their new quantitative easing initiative, thereby lowering borrowing costs and providing more liquidity to Greece.

Still, we've observed diminishing returns from the Fed's interventions, there is no political tolerance for the Fed to intervene in securities involving any credit risk that would be borne by U.S. citizens (purchasing European sovereign debt, for example), and the yield on the 10 - year Treasury bond is already down to 1.7 %, which is far below where it stood when prior interventions were initiated.

In contrast to IMF loans to support the kleptocrats» banks and new Cold War asset grabs from the Eastern border provinces with Russia, Ukraine's sale of bonds to Russia's sovereign debt fund and its contracts signed for gas purchases were negotiated by a democratically elected government, at prices that subsidized domestic industry and also household consumption.

Asia's sovereign bonds will likely be less endangered by rising interest rates and less vulnerable to Western policies of financial repression, which erode the purchasing power of their citizens» savings.

A rule change could increase the percentage of any single bond the ECB can buy, broaden the composition of sovereign bonds bought, expand the universe of eligible corporate bonds or even expand the program to include stock purchases — a radical move we see as unlikely at this stage.

The Central Government has launched «Sovereign Gold Bonds Scheme» as an alternative to purchasing physical gold.

Still, we've observed diminishing returns from the Fed's interventions, there is no political tolerance for the Fed to intervene in securities involving any credit risk that would be borne by U.S. citizens (purchasing European sovereign debt, for example), and the yield on the 10 - year Treasury bond is already down to 1.7 %, which is far below where it stood when prior interventions were initiated.

Municipal issuers have a key role to play in terms of: • Low - carbon technologies • Pollution control • Climate adaptation, such as disaster prevention and recovery We will seek to avoid purchasing the relatively few government - issued bonds that are explicitly issued to finance the development of projects, such as nuclear power plants or casinos, which are fundamentally misaligned with our investment objectives Sovereign Debt National governments around the world issue bonds (debt) to finance a wide variety of public goods including education, infrastructure, national defense, the judiciary and social welfare.

Mario Draghi, President of the ECB, hopes that driving the deposit rate further into negative territory and purchasing sovereign and corporate bonds will help Europe avoid the scourge of deflation...

Furthermore, allowing the ECB to purchase sovereign bonds during every distortion of the transmission mechanism would equate to allowing the ECB to intervene with every aggravation of a Member State's credit rating by purchasing sovereign bonds of said Member State.

Since the ECB holds no mandate to purchase sovereign bonds on primary markets, OMTs shall only affect secondary markets, so central banks may solely purchase sovereign bonds from resellers.

Parallel measures to ESM und EFSF such as the ex-ante unlimited purchase of sovereign bonds, the neutralization of interest spreads, the higher risk of suffering a haircut on debt, the possibility to hold sovereign bonds until they are due, and the influence on market indices and stock prices, as well as the intended persuasion of participants to purchase government bonds on the primary market, lead the BVerfG to redeem OMTs as such bypasses.

Article 123 (1) TFEU states, for motives of stability, that sovereign bonds emitted by Member States can not be purchased on the primary market.

One important condition for OMTs is the conditionality attached to a European Financial Stability Facility (EFSF) or a European Stability Mechanism (ESM) program, which involves primary market purchases of sovereign bonds and changes in national monetary policies.

Outright Monetary Transactions are a program installed by the ECB to purchase sovereign bonds issued by euro Member States.