Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:

http://www.euromoney.com/Article/1884656/ABS-Spanish-banks-take-ECB-repo-with-both-hands.html


ABS: Spanish banks take ECB repo with both hands
Jethro Wookey

It seems they may be using support to grow balance sheets rather than to roll funding.

European banks are issuing asset-backed securities in massive amounts and pledging them to the European Central Bank as collateral on its term repo funding. Since September, more than 50% of European ABS issuance has been used as ECB collateral. With banks bereft of other viable funding options pledging so much to the ECB for repo financing, it will become harder and harder to return those banks to a normal funding environment. "The ECB will keep taking collateral," says a eurozone banker. "It will be a long, hard slog to get out of this."

Around 10% of the ECB repo funding has been absorbed by Spanish banks. The total securitization issuance by Spanish banks last year was €143 billion, up 55% on 2006, and none has been seen on...

Just google up "spanish securitization repo ecb", will throw you into an abyss of armageddon statistics...

Pierre

by Pierre on Wed Oct 8th, 2008 at 12:16:50 PM EST
The ECB has announced to tighten the rules, and introducing stronger haircuts on collateral from February on.

Der Amerikaner ist die Orchidee unter den Menschen
Volker Pispers
by Martin (weiser.mensch(at)googlemail.com) on Wed Oct 8th, 2008 at 10:14:58 PM EST
[ Parent ]
Around 10% of the ECB repo funding has been absorbed by Spanish banks. The total securitization issuance by Spanish banks last year was €143 billion, up 55% on 2006

If that is true, ZP's €50bn fund doesn't even begin to cover what is needed...

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith

by Migeru (migeru at eurotrib dot com) on Thu Oct 9th, 2008 at 05:50:33 AM EST
[ Parent ]

Display:

Top Diaries

Occasional Series