We are the ECB. You will be assimilated

Or moved into riskier assets by the ECB’s corporate bond buying machine (CSPP to its friends).

Resistance may be futile but we’ll have to wait to make sure.

To move into those riskier assets you’d like to think that eventually the search for yield will become a real, worthwhile thing in Europe again. And not everyone buys that – Credit Suisse for example point out that over the last 2.5yrs in particular government bonds (bunds) have outperformed both high and low yielding credit assets. Their point is that “the time to hunt for yield as a dominant strategy (rather than as a short-term trade) might actually be when yields start to rise.”

But BofAML’s European credit team think it’ll maybe happen a bit sooner: