According to Volker Wieland ECB purchase program for corporate bonds is not necessary ("ARD-Plusminus")

Since the European Central Bank (ECB) announced its purchase program for corporate bonds in March 2016, corporate bond issuance increased. According to Volker Wieland, the ECB already could have ended this program.

"The economy recovers, therefore, it is not necessary to stick to this program", he said in an interview in the ARD TV magazine "Plusminus".

The Coporate Sector Purchase Programme (CSPP) refers to nonfinancial coporations holding an investment grade. Thus, predominantly large multinational companies, which finance themselves via the capital market, can benefit from the program. According to "Plusminus", national central banks have bought bonds of Daimler, BMW, Telekom and Anheuser-Busch Inbev. Wieland is rather skeptical regarding the impact. "The ECB distorts the market. The conditions for a range of companies have changed significantly. However, those large companies can already finance themselves more easily than small and medium-sized companies", he said.

ARD-Plusminus: "Wettbewerbsverzerrung: EZB begünstigt Großkonzerne"