Three Trades Benefiting From The ECB's Announcements

September 06, 2014   |   September 2014 Bond Updates
The European Central Bank announced yesterday that it would commence purchasing asset backed securities and respectively lowered its funding rate to 0.05% and deposit rate to negative 0.2%. The ECB has undertaken these aggressive actions to fight the continued real economy malaise in the Eurozone, push back on deflationary pressures and continue to promote investor “animal spirits” for Euro denominated risk assets. Based upon these new policy measures, three Euro-centric trades should perform well over the intermediate term: long of European small cap stocks; Euro funded carry trades in Emerging Markets; and, short of the Euro currency.

View more at: http://www.forbes.com/sites/jeremyhill/2014/09/05/three-trades-benefiting-from-the-ecbs-announcements/
 
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