Banks will be able to borrow government bonds from the European Central Bank for cash in an initiative aimed at eliminating the scarcity of bonds available as collateral for repurchase agreements, the ECB said Thursday. The 1.5% borrowing rate may not be so attractive, says Peter Schaffrik of RBC Capital Markets: “It’s relatively expensive and it should not really allow general collateral to become much cheaper.”
Reuters (08 Dec.) b
