AXA IM's Hayes: New LTRO ‘would not be game-changer'

A fresh long-term refinancing operation (LTRO) launched by the European Central Bank (ECB) will not have as significant an impact as those seen in 2012, according to AXA Sterling Strategic Bond manager Nick Hayes.

Hayes said talk of a new LTRO, fuelled by ECB president Mario Draghi saying last month this could be a possibility, is “sitting in the back of investors’ minds” as the year draws to a close. “A new LTRO may look a little different to previous ones, and it will allow banks to lock funding in at certain levels, a little like forward guidance policies are attempting to do in the US and UK. But I do not think it will be a big game-changer this time,” Hayes said. The ECB sparked a major risk rally in early 2012 when it launched two separate LTROs, offering long-term loans to European banks...