Pimco: ECB’s Lagarde Did a Very Good Job of Reassuring Markets

The transcript discusses the European Central Bank's (ECB) response to market pressures, highlighting Christine Lagarde's effective communication and the substantial measures announced. It explores the ECB's focus on financial conditions, particularly the GDP-weighted government bond spread, and describes their approach as a form of loose yield curve control. The potential for the ECB to buy junk bonds is also considered, with the option remaining open if market conditions worsen.

What is the significance of the GDP weighted government bond spread mentioned?

What potential future actions regarding high yield markets were discussed?