The ECB Has Bought €1.9 Trillion In Bonds: Here Is Who Sold And What They Did With The Money - Zerohedge

It’s hardly rocket science that for every bond the ECB has bought there must have been a seller – either a new issuer or an existing holder, which means:

    Net € FI issuance = Domestic net buying of € FI + Foreign net buying of € FI + ECB net buying of € FI

Imbalances between desired issuance and desired holdings at the prevailing market price are what drive valuation changes until equilibrium is found. Put differently, if the ECB bought a bond from an investor who wished to remain in the € fixed income market, then that investor would buy from another investor, who could buy from yet another, but unless there was new issuance to invest in eventually prices would reach levels where someone would take the money out and put it somewhere else.

Source: The ECB Has Bought €1.9 Trillion In Bonds: Here Is Who Sold And What They Did With The Money