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ECB’s QE Pumps Give Euro Credit Market Edge Over U.S., BNP Says
Divergence between European and U.S. monetary policy is boosting the attractiveness of euro corporate credit amid continued coronavirus upheavals, according to BNP Paribas SA. “There is less downside in European credit because it has much more robust support,” Viktor Hjort, the bank’s global head of credit strategy, said in an interview. “The ECB buys a lot more corporate bonds than the Fed in both absolute and relative terms.” The European Central Bank is also expected to boost stimulus at a Dec. 10 meeting, even as the Federal Reserve returns unused funds meant to backstop five emergency lending programs. ... (full story)