Exposure rates of the Dorval Asset Management Range – 7th May 2020

In a surprising judgment handed down on May 5, the German Constitutional Court has given the ECB three months to demonstrate that it sufficiently considered the impact of the public sector purchase program launched in 2015.

If it fails to do so, the Court will ask the Bundesbank to halt its public bond purchases (cf. chart 1), or even resell on the market the stock of bonds it already has. From an economic standpoint, it is easy to provide an answer to the Court’s questions, yet the legal debate is more complex. At a time when the Covid-19 crisis is fueling considerable uncertainty and taking up all governments’ and central banks’ energy, we can imagine that every effort will be made to minimize the effects of this disruptive decision.


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