European bond markets brace for cash surge prior to QE


European bond markets brace for cash surge prior to QE

A prosperous October awaits bond investors in the European markets as huge cash flows and Quantitative Easing are coming their way!

Europe’s debt markets will receive 150 billion euros worth of cash flows coming from bond redemptions and coupon payments as Barclays PLC revealed.  

Rainer Guntermann, a strategist at Commerzbank AG, said that investors are likely to channel the money back into the market.

Brexit uncertainty as well as the U.S.-China trade war, among others, hit the European market, as investors look for safe-haven assets, causing the turnout for European debts to go down.

The European Central Bank will try to offset it by unleashing new quantitative easing at the rate of 20 billion euros per month.

Cagdas Aksu and Max Kitson, income analysts at Barclays noted that October will be “the year’s most market-friendly month from a net cash flow perspective.”

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