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’Who tapped the LTRO, cont’d [updated]
Just one name today, but hopefully it rams home why banks are using the ECB’s three-year liquidity. From BBVA’s latest results:
Making use of the new lending facility provided by the European Central Bank (ECB),
Who can (or cannot) cut it
Europe’s banking industry is rushing to declare whether they’ve made the EBA cuts or not.
Here’s a running list of the statements we’ve seen so far:
Spain’s BBVA says will not need public funds for buffer but has €7.09bn capital shortfall in EBA test.
Greek debt swap — spot the missing banks [updated]
Interesting series of elisions from the Institute of Finance’s original ‘Greece financing offer’ document and later versions… (H/T a friend of FT Alphaville)
Before:
After:
Did you spot who fell off the list?
Banco de Credito de Peru,
A pause in Spanish bank piggybacking?
It’s gone all quiet in the other letters that make up a certain eurozone peripheral acronym…
Spain and Italy have both been contenders for the next eurozone hotspot, of varying degrees. And while Spanish and Italian banks have both been rushing to raise capital or prefund in recent months,
Ants, grasshoppers and Spanish banks
Here’s one to add to the Spanish banks about to lose their loan buffers theme.
Joseph Dickerson, bank analyst at Espirito Santo and last seen on FT Alphaville quoting Woody Allen and slapping a big buy on Lloyds,
SocGen on depleted Spanish bank loan loss buffers
For some months now, all the Spanish banking concern has been focused on funding and net margin issues. Worries about loan losses (so 2009) have ebbed away.
On Wednesday, Société Générale’s banking team says it’s time to revisit the issue.
Snap news
Breaking pre-market news on Wednesday,
- BBVA announces 9 per cent rise in full year profits, says bad debts stable — statement.
- Roche forecasts low single digit sales growth in 2011 — statement.
Fitch on Spanish mortgage walkaways
Fitch seems angry.
In a Friday statement, the rating agency dealt with a recent ruling by a judge in the Spanish province of Navarra, which said that giving a mortgaged house back to a bank is sufficient to cancel mortgage debt,
More Spanish banking negativity
RBS is recommending a cautious stance on Spanish banks on Monday.
It’s nothing to do with provisioning for legacy assets or impairments, however.
Like UBS analysts before them, the RBS move is down to diminishing new business margins — and an increasing cost of funding — which,
The acrid smell of burnt fingers…
… in the Spanish banking sector:
That’s what a couple of positive bond auctions in the periphery can do.
It’s a FUN RUN, not a bank run
Here’s one for the irony books.
Although please ONLY read on if you can easily differentiate between (A) a fun run hosted by a bank and (B) an actual run on a bank. And just to be clear …
(A) looks like this:
Snap news
Breaking pre-market news on Tuesday,
- BP returns to profit; to review dividend policy alongside FY results in early 2011 — statement and results.
- BG announces 2.7bn barrel upgrade for fields in the Santos basin and results — statement and statement.
Double agents in asset management
It may not be the workings of an Anna Chapman-style Russian sleeper cell.
But it is a case involving suspected double-agents. In the asset management industry.
As FTfm reports on Monday in their lead article:
Snap news
Breaking pre-market news on Wednesday,
- Deutsche Bank says sales and trading activity rebounded in September — statement.
- British Airways launches £350m convertible bond offering — statement.
Opportunities from the covered bond dislocation
SocGen analysts have turned their attention to the dislocation in covered bond prices vis-a-vis secured lending rates and government bonds.
Just as BarCap noted before them, they observe how “rich” covered bonds are currently trading with respect to the other markets.
Snap news
Breaking pre-market news on Wednesday,
- Telefónica strikes €7.5bn deal to buy Vivo from Portugal Telecom — reports.
- Apollo makes revised £10.75 offer per share for Brit Insurance — statement.
An €11bn stress test scenario for Santander, BBVA
Execution Noble has updated its original stress test scenario note for Spain’s Santander and BBVA banks, this time assuming a 10 per cent haircut scenario on Spanish sovereign bonds.
While their initial “adverse scenario”
Charting Europe’s grim sovereign-bank loop
“If the Spanish state has difficulty in financing itself outside Spain, then the difficulties will be even greater for those in the private sector.”
- BBVA chairman, Francisco Gonzalez
June 14, 2010 (Via Reuters)
Spanish banks – Facts and Fiction
Worried about the Spanish banking system? Don’t be. The domestic economy could double dip, wholesale funding costs could spike and yet Spain’s banks wouldn’t need a massive infusions of new capital.
So says Bank of America Merrill Lynch in a 77-page report published on Monday,
BNP Paribas: ‘Avoid Spanish banks for now’
Add the credit analysts at BNP Paribas to the growing list of those concerned about the robustness of the Spanish banks.
In a note published on Wednesday, analyst Olivia Frieser observed, in a comment on the findings of the June 2010 edition of the ECB’s Financial Stability Review,
Calming down on bank credit risk
Three-month dollar Libor fell just a bit on Friday, breaking with its unsettling rise over recent days, a trend which may have been related to fears over US financial reform and European sovereign exposure.
CDS report: Grinding tighter
Markit’s Gavan Nolan wrote this CDS report
News vacuum helping spreads to tighten
Euro rallying, supporting risky assets
Peripheral sovereigns lagging broader market – Greece 680bp, Italy 215bp (+1),
The provisioning pain in Spain stays mainly in the cajas
All hail the Spanish central bank’s long-awaited changes to the way banks provision for loan losses.
The proposed amendments are available on the Bank of Spain’s website, in Spanish.
Luckily Nomura’s Daragh Quinn has a handy English summary,
CDS report: Shorts back off
Risk appetite returning, little in the way of news
Commodity credits rebounding
Sovereigns tightening, Italy underperforming – Greece 675bp, Portugal 320bp (-10), Spain 235bp (-7), Ireland 245bp (-9),
Spanish flu hits London stocks, euro
It was all going so well. In fact, it was almost time to let the Rally Monkey out of its cage and then late on Wednesday afternoon (London time)…
Bam!
RTRS-EURO <EUR=> HITS SESSION LOWS VS U.S.
Equities and CDS, also eurotrashed
European stocks crash-landed toward their close on Friday, countering the gains reached at the week’s start in the wake of the eurozone rescue.
Spain’s Ibex 35 led the way with a 7.2 per cent drop — its biggest daily fall since November 2008,
The deflationary pain in Spain
Ouch. You don’t want deflation when your economy is struggling with huge private debts. So spare a thought for Spain on Friday, where official data revealed negative core inflation.
Flashes via Reuters,
CDS report: Credit rally, protection buying in sovereigns
Markets again led by sovereigns but significantly tighter due to announcement over the weekend
Protection buying in sovereigns pushed levels wider though from the open; Greece CDS was as tight as 480 bps to start
Moody’s announced guidance on its review of Greece’s A3 rating
Corporates and equities rally
Bank CDS,