...ECB Support Plan Dominates: Sentiment weakened again for emerging markets (EM) compared to our October survey, but improved for corporates ¡ both investment grade and high yield. The survey period was dominated by expectation and, on 22 January, confirmation of the ECB's unprecedented EUR1.1trn quantitative easing (QE) programme, to be launched on 9 March. Our findings reveal investor scepticism about QE's power to boost economic growth and how the programme is resulting in an intensification of the search for yield QE Market Impact: A clear majority of respondents (92%) expect the ECB's QE to boost capital markets, but only a minority (27%) believe it will address disinflationary trends. An all- time high of 65% rate the risk of deflation as high ¡ even though most responses were received after the bond buying programme was announced. Search for Yield Intensifies: With QE expected to create a shortage of government bonds and an increasing amount of these already having negative yields,...
