Cryan Says Credit Risk Is Being Misjudged Due to ECB Buying
- Corporate bond purchases also hurt volumes: Deutsche Bank CEO
- Draghi still only European policy maker ‘doing anything’
John Cryan speaks with Mario Draghi on Nov. 18.
Photographer: Jasper Juinen/BloombergThis article is for subscribers only.
The European Central Bank’s corporate bond purchases have sliced into debt-trading volumes and caused investors to misjudge the risk of some credit holdings, according to Deutsche Bank AG Chief Executive Officer John Cryan.
“The impact of buying up corporate bonds is that we see, in our bank, bond-trading volumes down something like three-quarters,” Cryan said on a panel at a conference in Frankfurt on Friday. “And there has absolutely been no price discovery now in corporate bonds, so we don’t really know the price of credit, which is a dangerous situation.”