Bond-Guzzling ECB Will Shield the Market From Next Debt Tsunami
- ECB buying will exceed sales by 240 billion euros, ING says
- January set to be busiest month for issuance, SocGen says
The European Central Bank headquarters in Frankfurt.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
European bond investors are looking to the region’s central bank to absorb a glut of sovereign debt heading to the markets in 2021.
Bond issuance by euro-area nations may total 1.25 trillion euros ($1.5 trillion) next year as they fight the fallout from the pandemic, on par with the record levels reached in 2020, according to ING Groep NV. In addition, the European Union itself is set to be a leading issuer, with a landmark stimulus plan that will be financed by jointly-issued debt.