What does the ECB's latest bond-buying plan mean for US corporate bonds?

Next month, the European Central Bank (ECB) will begin buying European investment grade corporate bonds as part of its quantitative easing economic stimulus programme, writes Charles Schwab director Collin Martin.

It is an important step for the bank as it marks the expansion of a programme that has so far mainly focused on government and agency bonds. The result of additional demand from the ECB, which is poised to buy billions worth of European corporate bonds, may push European corporate bond prices higher and yields lower. The bond purchases may even be supportive of the US investment grade corporate bond market, as lower yields on European bonds could encourage international investors to seek out higher-yielding alternatives - and US corporate bonds offer some of the highest yields in the ...