Purchases made under the ABSPP adhere to the principle of risk sharing among the Eurosystem central banks based on their capital key. On 1 April 2017 the Bank of Italy took on the role of asset manager for Italian securities on the primary and secondary markets. The asset-backed securities purchase programme (ABSPP), initially launched by outsourcing trading activities to external asset management companies, has now been wholly internalized. Purchases made under the CBPP3 adhere to the principle of risk sharing among the Eurosystem central banks based on their capital key (the percentage share in the ECB's total subscribed capital). Under the third covered bond purchase programme (CBPP3), the Bank of Italy purchases securities on the primary or secondary markets, in an amount determined by the ECB and weighted by national market shares. They are subject to a number of regimes for sharing risks that are mitigated by criteria that partly coincide with those envisaged for the assets pledged as collateral for Eurosystem refinancing operations (see Collateral management). The purchase programmes (conducted with monetary policy counterparties or with other counterparties that NCBs trade with for investment purposes) are implemented in accordance with the principles of decentralization and specialization. Finally, lower interest rates favour the depreciation of the exchange rate, providing a further boost to economic activity. those not directly covered under the central banks' interventions, thereby transmitting the monetary stimulus to the various private sector financing instruments. The additional liquidity spurs investors to rebalance their portfolios towards assets yielding higher returns, i.e. This has a direct effect on the economy, since a downward shift in market yields improves credit supply conditions and stimulates investment. The APP has direct effects on the yields of public and private sector securities. the corporate sector purchase programme ( CSPP, since 8 June 2016), for the purchase of bonds and commercial paper issued by non-financial corporations located in euro-area countries.the public sector purchase programme ( PSPP, since 9 March 2015), for the purchase of bonds issued by governments, recognized agencies and international organizations located in the euro area.the asset-backed securities purchase programme ( ABSPP, since 21 November 2014), for the purchase of securities issued following the securitization of bank loans.the third covered bond purchase programme ( CBPP3, since 20 October 2014), for the purchase of covered bank bonds.The Eurosystem's asset purchase programme (APP) consists of four asset purchase programmes:
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