Draghi Seen as Cure for Brexit Blues in Corporate-Bond Market
- Bonds eligible for ECB purchases have gained since U.K. vote
- Notes have bucked marketwide sell-off on central-bank optimism
Brexit: Is This the End of the Road For Monetary Policy?
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Investors are speculating that Brexit instability will cause the European Central Bank to speed up corporate-bond purchases that began three weeks ago.
Prices on euro-denominated corporate notes eligible for ECB buying have risen since the U.K. voted to leave the European Union last week in contrast to declines for similarly rated financial notes that are excluded from the program. European stocks, junk bonds and currencies have also fallen since the referendum, and the new-issue market has shut, amid uncertainty about the effect Brexit will have on the U.K. and European economies.