By Simon Kennedy
The European Central Bank may decide all good things must come to an end after today’s allocation of long-term loans.
The ECB’s three-year lending may approach a total of 1 trillion euros ($1.35 trillion) when the second Long Term Refinancing Operation is allocated at 11:15 a.m. in Frankfurt. Banks will ask for 470 billion euros, according to the median of 28 forecasts in a Bloomberg News survey, after taking 489 billion euros at the first tender in December.
While the flood of three-year cash has been credited with fueling a rally on Europe’s crisis-roiled bond markets and safeguarding the region’s banks, the ECB will be reluctant to issue a third tranche, according to Deutsche Bank AG and UBS AG. Doing so would fan tensions among ECB policy makers and reduce pressure on governments and banks to fortify balance sheets themselves, the analysts said.
Read more: http://www.bloomberg.com/news/2012-02-29/ecb-s-second-tranche-of-three-year-loans-may-be-the-last-as-crisis-abates.html
The European Central Bank may decide all good things must come to an end after today’s allocation of long-term loans.
The ECB’s three-year lending may approach a total of 1 trillion euros ($1.35 trillion) when the second Long Term Refinancing Operation is allocated at 11:15 a.m. in Frankfurt. Banks will ask for 470 billion euros, according to the median of 28 forecasts in a Bloomberg News survey, after taking 489 billion euros at the first tender in December.
While the flood of three-year cash has been credited with fueling a rally on Europe’s crisis-roiled bond markets and safeguarding the region’s banks, the ECB will be reluctant to issue a third tranche, according to Deutsche Bank AG and UBS AG. Doing so would fan tensions among ECB policy makers and reduce pressure on governments and banks to fortify balance sheets themselves, the analysts said.
Read more: http://www.bloomberg.com/news/2012-02-29/ecb-s-second-tranche-of-three-year-loans-may-be-the-last-as-crisis-abates.html
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