tag:blogger.com,1999:blog-8290544642025682538.post4743822327232288306..comments2024-03-07T20:31:22.418-07:00Comments on Central Bank News: ECB Allots EUR 529.5 billion in second round of LTROcentralbanknews.infohttp://www.blogger.com/profile/16294624977261903583noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-8290544642025682538.post-54729166740142229422012-03-01T12:19:26.857-07:002012-03-01T12:19:26.857-07:00Still think the ECB can do more though, it's n...Still think the ECB can do more though, it's not like the LTRO funds will actually be lent out to real businesses anyway, the ECB should be much more agressive given that the EU is in recessionAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8290544642025682538.post-2951315457591326972012-03-01T00:43:31.118-07:002012-03-01T00:43:31.118-07:00The LTRO basically gives the banks very cheap fund...The LTRO basically gives the banks very cheap funding for about 3 years. Given that European banks had come under some funding pressures it makes sense for the banks to take advantage of the facility from a funding perspective. It also makes sense from a profitability perspective; just find some sort of investment with a similar maturity and collect the carry. In fact, some people have called the LTRO an intermediated form of quantitative easing because the banks can borrow cheaply through the LTRO and then buy Italian and Spanish government bonds; thereby pushing yields down.centralbanknews.infohttps://www.blogger.com/profile/16294624977261903583noreply@blogger.comtag:blogger.com,1999:blog-8290544642025682538.post-66876508187692632012-03-01T00:34:10.111-07:002012-03-01T00:34:10.111-07:00Last time I heard about LTRO the banks returned th...Last time I heard about LTRO the banks returned the money from ECB within days, what happened?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8290544642025682538.post-71640123365470096582012-02-29T16:26:30.302-07:002012-02-29T16:26:30.302-07:00Net liquidity added to banking system (after subtr...Net liquidity added to banking system (after subtracting rollovers) = estimated EUR 313B, compares to previous EUR 210B<br />Not bad...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8290544642025682538.post-34786883934878470562012-02-29T12:38:38.688-07:002012-02-29T12:38:38.688-07:00Well this LTRO + the December one now fully covers...Well this LTRO + the December one now fully covers Euro bank bond maturities in 2012 and 2013, so the Euro banks now effectively have their funding sorted through to 2014. So that's liquidity solved in the short-term....Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8290544642025682538.post-73698812231279630582012-02-29T11:33:53.560-07:002012-02-29T11:33:53.560-07:00Do you think? This is already at market consensus...Do you think? This is already at market consensus. If they think money is infinity, this is really a good news. <br />In my opinion market is just getting some time, but we will see bad days in next months.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8290544642025682538.post-48534418675535222822012-02-29T10:29:20.956-07:002012-02-29T10:29:20.956-07:00Good outcome, more than expected, lots of banks in...Good outcome, more than expected, lots of banks involved, should be helpful to the European situation...Anonymousnoreply@blogger.com