The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Italian banks take the long road

They were extendible

How extendible notes work

Despite the attractive economic rationale for issuing short-dated transactions, not all jurisdictions have fully embraced them. One noteworthy aspect of the credit dislocation has been the absence of any noise about the Italian banking system. A regular feature of the credit spread widening was for Italian credit to be among the first to suffer. But this time things have been different. Italian banks are little mentioned as a possible cause for concern. In fact, Italy’s banks have outperformed the financials sub-set of the iTraxx index.

One reason why Italian banks are at relative peace in the banking turmoil is that they have remained focused on domestic activity. But it’s also because of their excellent liquidity position. In the past five years Italian banks have been the most willing sellers of medium-term debt.

During the period from September 2002 to March 2006 the average tenor of Italian banks’ senior financing was 5.9

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree