European Central Bank to buy corporate bonds from June

Bloomberg

The European Central Bank (ECB) said it plans to start buying corporate bonds in June as it unveiled more details of its purchase programme.
The bank will start buying corporate bonds maturing between six months and 30 years, according to a statement on the bank’s website.
Purchases will include bonds issued by insurance companies, while excluding those sold by banks, ECB President Mario Draghi said in a press conference.
The new details may further boost appetite for credit after the central bank’s pledge last month to buy corporate bonds sent average yields on the debt down to the lowest in a year and triggered Europe’s busiest week for issuance.
Investors have rushed to buy securities before buying starts, even though they don’t know exactly which securities will be targeted.
“Follow through in the corporate purchase program is essential and releasing implementation details will support credit spreads even at these record levels,” said Regina Borromeo, a London-based money manager at Brandywine Global Investment Management, which oversees $69 billion of assets.