What Draghi’s Bond Buying in Europe Means for U.S. Debt Markets

The European Central Bank’s resolve to funnel more than a trillion dollars into the region’s capital markets may be a boon for borrowers across the Atlantic.

ECB President Mario Draghi unveiled a bond-purchase program to ward off signs of deflation threatening to engulf the euro area similar to the exercise undertaken by the Federal Reserve six years ago. The infusion aimed at boosting asset prices may prompt investors to shift money into U.S. corporate bonds, which offer the most yield relative to company debt in Europe in a decade.