By Todd Buell
FRANKFURT--The European Central Bank said Thursday that it has
appointed four asset managers to conduct its purchase program of
asset backed securities, adding that the purchases under the
program should begin in November.
The ECB hopes that purchases of ABS and covered bonds, along
with targeted bank loans and rate cuts, can help lift inflation in
the currency bloc and boost economic growth.
It said the appointed companies are Amundi and Amundi
Intermédiation, Deutsche Asset & Wealth Management
International, ING Investment Management and State Street Global
Advisors.
"The executing asset managers' role will be to conduct the
eligible ABS purchase transactions on explicit instructions from,
and on behalf of, the Eurosystem, which will undertake price checks
and due diligence prior to approving the transactions," the ECB
said in a press release. The Eurosystem refers to the ECB and the
central banks of the countries that use the euro.
"The contracts with the executing asset managers contain a
number of provisions to mitigate conflicts of interest, such as the
separation of teams working for the ECB and those engaged in any
other activities," the press release said.
Write to Todd Buell at todd.buell@wsj.com