Now We Have Two Answers to the ECB Corporate Liquidity Question
It's yes and no, depending on the data you look at.
An illuminated euro currency symbol is projected on to the European Central Bank headquarters during the Luminale light festival in Frankfurt, on March 17, 2016.
Photographer: Martin Leissl/BloombergThis article is for subscribers only.
Has the European Central Bank created a liquidity trap for corporate bond investors?
The ECB's surprise announcement in March to extend its asset-purchase program to investment grade non-bank corporate bonds triggered a rapid, and indiscriminate, tightening of credit spreads and a jump in primary-market issuance. And that was all before the central bank purchased a single corporate bond.