"It is hard to understand how the ECB ended up buying the bonds of property companies, while at the same time warning of the risks of property price inflation," former ECB chief economist Otmar Issing told Reuters.
But data this week shows the central bank still owned the two bonds issued by SBB as of Nov. 24.
While Sweden is not in the euro zone, SBB issued the debt bought by the ECB in neighbouring Finland, which is.
Alongside the SBB bonds, the ECB also hoovered up the debt of other property companies which have since hit problems, including Sweden's Heimstaden.
The ECB also gobbled up many German real estate bonds, including 39 issued by Vonovia, which has been selling property to cut debt.
Persons:
Otmar Issing, Daniel Gros, Gros, Sweden's, Heimstaden, it's, Alexander Smith
Organizations:
SBB, European Central Bank, ECB, Reuters, Research, Institute, European, Bocconi University, Fitch, Vonovia, Thomson
Locations:
FRANKFURT, Europe, Germany, Sweden, Milan, Swedish, Finland