20 Jan 2015
Investors expecting Sovereign QE in January - SG
FXStreet (Guatemala) - Sebastien Galy, analyst at Societe Generale, exlained that their survey found that around 65% of investors expect ECB Sovereign QE in January.
"A smaller group expects it later or additional waves of Sovereign QE."
"Only a small minority rejects Sovereign QE. The bulk of the market expects a program of 500bn but the distribution is quite right skewed with another peak at 1000bn (average 652bn, moving average 666bn, Bloomberg consensus 550bn). A significant minority expects the ECB to cut its main refinancing rate in January or in the following months."
"Since the leaks to the press over the week-end, the expected amount of risk mutualisation in the QE program declined by about 10% as did the expected size of the QE program."
"A smaller group expects it later or additional waves of Sovereign QE."
"Only a small minority rejects Sovereign QE. The bulk of the market expects a program of 500bn but the distribution is quite right skewed with another peak at 1000bn (average 652bn, moving average 666bn, Bloomberg consensus 550bn). A significant minority expects the ECB to cut its main refinancing rate in January or in the following months."
"Since the leaks to the press over the week-end, the expected amount of risk mutualisation in the QE program declined by about 10% as did the expected size of the QE program."