There’s a new ‘how is sovereign debt hurting you?’ question in the European Central Bank’s regular bank lending survey…
… which presents an interesting break-out of collateral concerns .
Just under one-third of banks said that sovereign pressures had affected funding between December and January. Note how the impact varies between banks’ own funding and what they say they’ve passed on to borrowers. Plus banks said they expected money market conditions to relax* a bit in January (the survey ended on January 9).
But bearing in mind both that, and ECB President Mario Draghi’s stated wish for banks’ LTRO cash to head to the real economy — conditions that banks have been applying to corporate credit don’t look hopeful:
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*And on the relaxation in bank funding front… worth noting that Commerzbank pushed out the first German bank senior unsecured bond in ages on Wednesday, while Santander is issuing the first Spanish bank covered bond in eight months, according to IFR.
Related link:
LTRO smackdown – FT Alphaville