Quotes from Societe Generale Cross Asset Research:
-The first 3-year Long Term Refinancing Operation (LTRO) provided some €489bn to European banks last December, which covered their MLT funding needs for the next two years. Funding risk for European banks have therefore been reduced significantly.
-The second 3-year LTRO should further reduce the banking risk as the range of eligible assets will be expanded. As such, this is a clear positive signs for financial markets. The 3-month Euribor-OIS spread, reflecting the banking counterparty risks on European monetary markets, is now declining rapidly.
-The first 3-year Long Term Refinancing Operation (LTRO) provided some €489bn to European banks last December, which covered their MLT funding needs for the next two years. Funding risk for European banks have therefore been reduced significantly.
-The second 3-year LTRO should further reduce the banking risk as the range of eligible assets will be expanded. As such, this is a clear positive signs for financial markets. The 3-month Euribor-OIS spread, reflecting the banking counterparty risks on European monetary markets, is now declining rapidly.
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