The European Central Bank has addressed a significant concern regarding its intervention in eurozone sovereign bond markets by renouncing any claim to seniority over private sector creditors in its new bond buying programme, Fitch Ratings says. ECB President Mario Draghi said Thursday that the Eurosystem expects pari passu treatment with private creditors regarding bonds bought via Outright Monetary Transactions (OMTs). As we said in a special report, Sovereign Rating Implications of External Support, Bond Purchases and Seniority, published 24 August, the de facto seniority of the ECB, shown in its exclusion from the ... (full story)