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Who Benefited From The ECB Bonanza?

06 June 2014 by HCM

There is a debate among analysts regarding what the impact on the real economy of the set of measures announced by the ECB yesterday could be. Some are convinced lending will get a boost, others are more sceptical. But one result is obvious for everyone: financial assets have massively benefitted from the ECB bonanza, and particularly credit markets. Every single index, both in the US and in Europe is tighter over the last couple of days, and among them iTraxx Financials Senior (ITXES) and iTraxx Financial Sub (ITXEU) have been the outperformers. A typically aggressive speech by Mr Draghi has caused investors to scramble to get their hands on risk, and the pre ECB headlines regarding banks fines that once worried the market are long forgotten.