Private Banking Survey 2015

Private Banking Survey 2015

US leaders march on Swiss banks’ global territory

Swiss franc: special focus

Swiss franc: special focus

The SNB euro peg shift has far-reaching implications

ABS: Spanish banks take ECB repo with both hands

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...


You must be a trialist or subscriber to view this content

Please Subscribe or take a Free Trial below.




SPONSORED ARTICLES

How to hedge risks in international trade

Sponsored by Nordea

How to hedge risks in international trade

Sub-Saharan Africa oil industry faces crude reality

Sponsored by FBN Capital

Sub-Saharan Africa oil industry faces crude reality

Is there life in MENA at $50 a barrel?

Sponsored by EFG Hermes

 

Is there life in MENA at $50 a barrel?