Science & Environment
ECB haunted by bond buys in Swedish property crisis…
Business & FinanceDeals
30 November 2023, 5:22 am 1 minute
Reuters was first to report a debt crunch at Swedish property group SBB has left the European Central Bank at risk of losses and highlighted the 26 billion euro ($29 billion) exposure it built up to Europe’s now stricken real estate sector through its crisis-era bond buying.
Market Impact
The ECB also gobbled up many German real estate bonds, including 39 issued by Vonovia, which has been selling property to cut debt. The bonds trade far closer to par, one at a discount of about 20%. Property companies make up 8% of the ECB’s Corporate Sector Purchase Programme, now worth 326 billion euros. The ECB does not disclose the make-up of its other, pandemic-era bond-buying scheme.
Article Tags
Topics of Interest: Business & FinanceDeals
Type: Reuters Best
Sectors: Financial ServicesReal Estate
Regions: Europe
Countries: Sweden
Win Types: Speed
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Significant National Story
