Economics
ECB May Discuss Junk Debt Collateral in Call on Wednesday
- Evening video conference could discuss easing rating rules
- Italian yields have risen ahead of S&P credit review this week
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European Central Bank policy makers will hold a call on Wednesday evening where they may discuss whether to accept junk-rated debt as collateral from lenders, according to officials familiar with the matter.
The video conference could be intended to head off concerns that some sovereign and corporate bonds will soon be downgraded to non-investment grade because of the cost of fighting the coronavirus pandemic.