Corporate bonds with a negative yield

La demande est réussie.

Dear European Central Bank,

Under the right of access to documents in the EU treaties, as developed in Regulation 1049/2001, I am requesting documents which contain the following information:

When making the decision to buy corporate bonds with a negative yield, did ECB give consideration to the principle of an open market economy with free competition, provided for by the article 119 of Treaty on the Functioning of the European Union?

Yours faithfully,

Mihai Badea

Secretariat Inbound e-mails,

Dear Mr Badea,

The ECB hereby confirms receipt, on 12 September 2016, of your application for access to ECB documents as outlined in your below e-mail.

Your request has been registered and will be assessed on the basis of Decision ECB/2004/3 (the unofficial consolidated version of this Decision is available on the ECB website: http://www.ecb.europa.eu/ecb/legal/pdf/c...).

A reply will be provided to you within the deadline foreseen by Decision ECB/2004/3.

Yours faithfully,
Compliance and Governance Office

DG Secretariat
European Central Bank
Sonnemannstrasse 20
60314 Frankfurt am Main

[email address]

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Dear Secretariat Inbound e-mails,

Here is an attempt at clarifying my question: when ECB buys corporate bonds from selected companies, in some way, it discriminates among companies. Due to the cash received through the quantitative easing program, the respective companies have an advantage comparing to other companies on the market. More than that, in the case of corporate bonds with a negative yield, the beneficiary companies will have to pay back less money than they had received. This is similar to giving those companies free money. Again, it is assumed that only selected companies benefit from such facility. Therefore, it would be interesting to know how ECB took these aspects into consideration. Did ECB take measures to mitigate the potential negative effects of the quantitative easing program on the competition? What are those measures?

Yours sincerely,

Mihai Badea

Secretariat Inbound e-mails,

Dear Mr Badea,

 

Thank you for your clarifications.

The Compliance and Governance Office is assessing your request on the
basis of Decision ECB/2004/3 and we aim to come back to you within the
foreseen deadline.

 

 

Compliance and Governance Office

 

DG-Secretariat

European Central Bank

Sonnemannstrasse 20

60314 Frankfurt am Main

 

[1][email address]

 

 

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Secretariat Inbound e-mails,

1 Attachment

Dear Mr Badea,

 

Please find enclosed the reply from the ECB’s DG Secretariat to your below
request for access to ECB documents.

 

Kind regards,

Compliance and Governance Office

 

DG-Secretariat

European Central Bank

Sonnemannstrasse 20

60314 Frankfurt am Main

 

[1][email address]

 

 

From: Secretariat Inbound e-mails
Sent: 05 October 2016 17:50
To: '[FOI #3298 email]'
Subject: RE: access to documents request - Corporate bonds with a negative
yield

 

Dear Mr Badea,

 

Thank you for your clarifications.

The Compliance and Governance Office is assessing your request on the
basis of Decision ECB/2004/3 and we aim to come back to you within the
foreseen deadline.

 

 

Compliance and Governance Office

 

DG-Secretariat

European Central Bank

Sonnemannstrasse 20

60314 Frankfurt am Main

 

[2][email address]

 

 

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Dear Madam/Dear Sir,

Thank you for your answer.

Best regards,

Mihai Badea

Secretariat Inbound e-mails,

Dear Mr Badea,

 

Given your previous interest in the corporate sector purchase programme
(CSPP), we would like to take this opportunity to draw your attention to
our recent transparency initiatives in this domain.

 

While respecting the decentralised nature of the programme, on 22 ^ June,
the ECB published in its [1]Economic Bulletin a dedicated box (box 2),
which covers some implementation details and the impact of the programme.
It reiterates the principles behind the design of the CSPP universe of
eligible assets and evidences how the CSPP holdings mirror this universe
very closely in terms of composition, when looking at either country,
sectoral or rating breakdowns.

 

Moreover, as of 26 June the ECB provides a [2]full list of CSPP holdings,
also for the convenience of non-market experts. This list includes the
names of issuers, maturity dates and the coupon rates of the bonds. The
National Central Banks (NCBs) will continue publishing information on the
securities available for lending on their own websites, but these will be
complemented with this full list of CSPP holdings published on the ECB’s
website. In line with the existing practice of some NCBs, the ECB will
start creating a history of these lists by publishing a new, one every
week, starting on 26 June.

 

The ECB also plans to provide updates on the country, sectoral and rating
breakdowns of the CSPP portfolio, in line with the information provided in
the above mentioned box of the Economic Bulletin.

 

We hope you will find the above information useful for your purposes.

 

Yours sincerely,

 

Compliance and Governance Office

DG Secretariat

European Central Bank

Sonnemannstrasse 20

60314 Frankfurt am Main

[3][email address]

 

From: Secretariat Inbound e-mails
Sent: 11 October 2016 15:29
To: [FOI #3298 email]
Subject: RE: access to documents request - Corporate bonds with a negative
yield

 

Dear Mr Badea,

 

Please find enclosed the reply from the ECB’s DG Secretariat to your below
request for access to ECB documents.

 

Kind regards,

Compliance and Governance Office

 

DG-Secretariat

European Central Bank

Sonnemannstrasse 20

60314 Frankfurt am Main

 

[4][email address]

 

 

From: Secretariat Inbound e-mails
Sent: 05 October 2016 17:50
To: '[FOI #3298 email]'
Subject: RE: access to documents request - Corporate bonds with a negative
yield

 

Dear Mr Badea,

 

Thank you for your clarifications.

The Compliance and Governance Office is assessing your request on the
basis of Decision ECB/2004/3 and we aim to come back to you within the
foreseen deadline.

 

 

Compliance and Governance Office

 

DG-Secretariat

European Central Bank

Sonnemannstrasse 20

60314 Frankfurt am Main

 

[5][email address]

 

 

Afficher les sections citées

Dear Madam/Dear Sir,

Thank you very much for the additional information.

Best regards,

Mihai Badea