Strategists at Rabobank have looked at.........>

EGBS: Strategists at Rabobank have looked at comments from Yves Mersch about the

need to source more debt from price-insensitive buyers might increase the

marginal impact of each euro spent on QE. To do this they have constructed a EZ

debt 'purchasability'

- Rabobank looked at changing ownership of government bonds and then rank each

investor class by "purchasability". For example, over the course of QE foreign

holdings have plummeted; it's easy to buy from foreigners. Rabo created an

ownership-weighted measure ability to buy debt.

- Rabo find that "non-EZ investors having clearly been more willing to offload

their lower yielding core bonds than they were to divest their holdings of

peripheral paper. Belgium is something of an outlier here with this being one of

only two countries where non-EZ investors have increased their ownership share."

However, Larger pension/insurance holdings in the periphery suggest that the ECB

might have to bid more aggressively to secure bonds.

- They find it is easier to purchase German, Finnish and French debt but more

difficult to source Belgian and peripheral bonds.