Our outright purchases under the APP have tightened spreads on covered bonds and ABS, while rates on senior unsecured bank bonds have fallen due to the portfolio rebalancing effects of the APP. This positive effect of monetary policy on wholesale funding conditions is confirmed by the Bank Lending Survey (BLS).
Close to two-fifths of banks surveyed in the October 2016 BLS reported a net improvement in their market financing conditions owing to the APP – up from one-fifth in the April survey – in particular for financing via covered bonds and unsecured bank bonds, but also via ABS issuance.