###POV. REDEMPTIONS MATTER MORE WHEN THEY'RE....>

ECB: ###POV. REDEMPTIONS MATTER MORE WHEN THEY'RE IN THE PSPP. WATCH OUT APRIL

- It's raining liquidity in Europe in April. The w/b Apr 15th is the 5th biggest

redemption/coupon payment week of the year at E43.2bln. The following week, the

6th biggest at just under E42.7bln and the one after that the 10th biggest at

E29bln. 

- The ECB owns a chunk of this redeeming debt and has its largest 2018

redemption month at E22.6bln in the PSPP- almost one quarter of all redemptions.

- Redemptions are more powerful when hitting a PSPP portfolio than in say a

money managers' portfolio. A money manager is not forced to reinvest the cash;

s/he is likely only to extend maturity by a small amount into say 1wk, 1m or

maybe 2Y paper to replace the 0 day maturing paper; can invest in many

instruments from various countries so deadening the influence upon any single

credit. A PSPP portfolio redemption WILL be reinvested further up the maturity

spectrum in line with the average maturity of the country; MUST invest within

weeks of the redemption; MUST attempt to buy from the same country. 

- Between April 13-15th E44.4bln redeems from Germany and Neths.