European Central Bank
The significant boost provided by the European Central Bank's emergency bond-buying program (PEPP) to Greek state bonds is set to come to an end, a development that may be painful for some eurozone economies.
The Greek bond market's reaction will be interesting, though as is the case with any QE program, the biggest challenge will be which exit strategy the ECB will choose.
Since the European Central Bank launched its first quantitative easing program in 2015, a common topic among fund managers and in rating agency reports was the risk of the Japanification of the European bond market; that is the prospect of one of the biggest bond markets in the world shrinking constantly, with investors having ever decreasing options for purchases and opportunities for profits
Christine Lagarde has once again proven herself to be a worthy successor to Mario Draghi at the helm of the European Central Bank (ECB).
More than many political leaders she is aware of the critical nature of the situation created by the unprecedented epidemiological crisis and she has therefore boldly taken the necessary steps.