The total stock of eligible securities which is currently outstanding – held in investors’ portfolios or retained by the originating banks – is already sizeable. We are confident that it will grow as a result of our presence in the market.
Over time, as our purchases contribute to a normalisation in trading conditions, secondary market and issuance activity will expand in those segments that are currently inactive. As the experience of other central banks that have engaged in outright purchases of structured products can demonstrate, market size and purchasing volumes are to a certain extent co-determined and endogenous.