March 20, 2020 / 4:50 PM / 9 days ago

BofA says 24 firms elegible for bond-buying schemes of both ECB and BOE

LONDON, March 20 (Reuters) - Daimler and Deutsche Telekom are among 24 firms that stand to benefit the most from central bank asset-purchase schemes as their debt is eligible for the UK as well as euro zone stimulus programmes, investment bank BofA said on Friday.

The Bank of England announced this week it would restart buying corporate debt for the first time since 2016, while the the European Central Bank also ramped up bond purchases, bringing total planned purchases of corporate and government bonds to 1.1 trillion euros.

Auto companies Daimler, BMW and Volkswagen, as well as utility Deutsche Telekom , which have notable debt piles outstanding in both euros and sterling, are eligible for both corporate bond purchases, BoA analysts told clients.

That would imply tighter supply of these bonds in the market, potentially boosting their prices.

“These names could be the ultimate beneficiaries as two central banks fight over squeezing their bonds,” wrote BofA.

“We expect these 24 names to become core longs for credit investors at this juncture.”

Two of the companies: Unilever and Engie , opened Europe’s corporate bond market on Friday, which had been shut since March 11, according to Refinitiv IFR, with books heavily subscribed on both deals.

Here are the rest of the companies BoA has identified, ordered by the number of eligible bonds they have outstanding:

* Daimler

* BMW

* Deutsche Telekom

* Volkswagen

* Deutsche Bahn

* Engie

* Telefonica

* Anheuser-Busch InBev

* EDF Energy

* Siemens

* Total

* Unilever

* E On International

* Iberdrola

* BASF

* Suez

* Veolia Environnement

* Compagnie de Saint Gobain

* Nestle Holdings

* ESB Finance

* Linde

* Bouygues

* Compass Group

* WPP (Reporting by Yoruk Bahceli;Editing by Elaine Hardcastle)

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