The ECB Ends The CSPP Today And Will Switch From Buying €8 Billion/Month To Reinvesting €1.8 Billion/Month.

ECB buying corporate

The ECB confirms that it will remain present in the primary via re-investments. Also that the ESG strategy of the CSPP will arrive by the end of the year. In an explanatory note, the ECB confirms one of the doubts that continued to circulate among investors with the end of the CSPP’s net purchases (today): what its role would be after taking on a leading role in the primary market in recent quarters.

Today the CSPP net purchases end but the ECB confirms that it will continue to be present in the primary through reinvestments that we estimate to be around €1.8 billion/month, an amount that compares with €8 billion/month of gross purchases on average during 2021.

Moreover, in the same note, the ECB clarifies that some of the ESG strategies for the CSPP could be implemented by the end of the year. In addition to climate change and green bond purchases, the ECB says it actively supports vision and initiatives to raise awareness of the importance of ethical and socially responsible behaviour.

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