Pictet Wealth Management note out on ECB QE:....>

ECB: Pictet Wealth Management note out on ECB QE: "ECB QE2: Go Big, or Go Home!"

- Pictet estimates that APP relaunch of at least E600bln required for inflation

gap of 0.50% to be closed, i.e. a 1.5% projection vs 2.0% ECB target.

- Sees E50bln/month for 12 months; could be smaller for longer (i.e. E30bln, 18

months, E25bln, 24 months, or open-ended linked to "state-contingent forward

guidance".)

- Issuer limits to be raised from 33% to 50%.

- Possible wild-cards: expansion of QE universe to senior bank debt or equities;

possible removal of capital key limits (though bar to radical changes is high).