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0.0011709601873536 0.0011709601873536 0.00234192037470721 0.0011709601873536 0.00351288056206081 0 0 0
Stock impact report

ECB Confirms Acceptance Of Junk Debt As Collateral Ahead Of Imminent Italy Downgrade [zero hedge]

Barclays PLC (BCS) 
Company Research Source: zero hedge
ECB Confirms Acceptance Of Junk Debt As Collateral Ahead Of Imminent Italy Downgrade Update (1450ET) : Just as we suspected and detailed below, The ECB has followed The Fed's path by accepting junk debt as collateral for its lending facilities. In an effort to mitigate impact of possible ratings downgrades on collateral availability , the European Central Bank says it will “grandfather until September 2021 eligibility of marketable assets used as collateral in Eurosystem credit operations falling below current minimum credit quality requirements.” As we noted below, this is all being done to avoid (among other things) a potential catastrophe when Italy is downgraded to junk (expected Friday). Full ECB Statement below: ECB to grandfather until September 2021 eligibility of marketable assets used as collateral in Eurosystem credit operations falling below current minimum credit quality requirements Appropriate haircuts will apply for assets that fall below the Eurosystem minimum credit Show less Read more
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