Investors Prepare for ECB by Underweighting Credit After 6 Years
- Positioning turns as central bank prepares to pare stimulus
- Financial exposure ‘massively down’ before Thursday meeting
The euro sign sculpture stands near the former European Central Bank headquarters in Frankfurt.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
Money managers have turned underweight on European credit for the first time since September 2011 as they position for the shifting tide of ECB money.
A Bank of America Corp. survey this month showed investors had fully unwound long positions, as the so-called Draghi Put eases. On Thursday, European Central Bank policy makers look poised to hold the first formal talks on the end of a bond-buying program that has been mopping up corporate debt for two years.