Hat tip for this to Solange in the comments at this post
(Solange provides 3 links for more detail)
In brief:
- As of 15 December 2016, the ECB makes its holdings under the PSPP also available for securities lending against cash as collateral, subject to certain conditions.
- This was announced after Draghi's press conference!
- To address the issue of the Eurosystem's collateral shortage
Solange notes (with raised eyebrows I'm guessing! :-D ):
- the allowable size of the program - per institution - is almost exactly the size of the amount of "bad loans" at Monte Paschi, so you have to wonder if there weren't more smoke and mirrors going on today that any of us actually detected
Its worth reading those links for more on this.