A Deep Dive Into ECB Corporate Bond Purchases

The transcript discusses the European Central Bank's (ECB) corporate bond purchase program, focusing on its impact on market liquidity, yields, and spreads. It outlines the criteria for investment-grade bonds eligible for ECB purchases and highlights potential risks associated with holding downgraded bonds. The ECB's risk management strategy and its aggressive buying approach are examined. Additionally, the eligibility of Eurobonds, including those from US companies with operations in the eurozone, is discussed.

What potential risks does the ECB face if the bonds they purchase are downgraded?

Can non-European companies issue Eurobonds that the ECB can purchase? Explain the conditions.