ECB QE Monitor - September 2020

Friday 11 September 2020

  • The ECB's balance sheet is now equivalent to 54% of euro area GDP compared to 39% at the start of the year.
  • In August, the ECB reduces its purchases to €59bn on PEPP and €19bn on APP. This slowdown could be explained by the summer seasonality.

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Other news

Vignette - Risk Budgeting

Risk budgeting and trade sizing: why they matter to multi-asset portfolio construction

In the current environment of heightened uncertainty, managing a multi-asset portfolio has rarely looked as complex as it does today, especially for those investors looking for an appropriate governance model on which to take investment decisions.The issue is not only to make accurate market forecasts and formulate appropriate investment views, but also to construct an efficient portfolio based on these views within a given risk budget.

Vignette - The Day After #11

The day after #11 - Post-crisis narratives that will drive financial markets

Today, investors have a unique opportunity to observe the spreading of a real virus alongside the viral nature of financial markets and the real economy. As Nobel Prizewinning economist Robert Shiller points out in his book, Narrative Economics: How Stories Go Viral and Drive Major Economic Events, “stories and images are created around new economic events”1. In some cases, these stories are memories of the past and their spreading can have major implications regarding economic and financial markets.