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Posts Tagged ‘Barclays’

EU Stress Test May Trigger Capital Injection Of EUR 85 Billion

In Financial Markets, International Econnomic Politics, National Economic Politics on 16.07.10 at 14:10

European banks may need to raise more than €85bn to bolster their capital after stress tests, according to Barclays Capital.

“We view the upcoming release of the European banks stress tests as a potentially important inflexion point for the market.”

Barclay’s Capital


Spanish savings banks, or cajas, may require €36bn, German Landesbanks could need €34.5bn, while the Greek banks may have to raise €8.6bn, according to analysts led by Jeffrey Meli in New York.

Portuguese lenders may require €5.9bn, the Irish Independent reports.

“We view the upcoming release of the European banks stress tests as a potentially important inflexion point for the market,” the analysts writes.

Adding: “They may ease concerns by ensuring that the sovereign crisis and a likely slowdown in European growth will not result in widespread bank failures.”

Investors are concerned that soured loans to real estate developers and holdings of bonds issued by governments of nations on Europe‘s periphery mean some lenders may have burned through their capital.

The European regulators are running stress tests on a total of 91 of the biggest banks, representing 65% of the European financial industry.

The results are due for partial publication on July 23.

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Investors Are Dumping Covered Bonds

In Financial Markets, International Econnomic Politics, National Economic Politics on 28.06.10 at 16:06

European institutional investors are now dumping their covered bonds, as the European Central Bank is about to close its purchasing program.

“Investor demand has been wilting given the record €126 billion issuance over the first half of 2010.”

Societe Generale

Investors now rush to sell covered bonds as the European Central Bank prepares  to pull the plug on program, according to Structured Finance News.com.

Covered bond issuance has been strong over the past five trading days on the back of banks looking to take advantage of the final days of the European Central Bank’s (ECB) purchase program.

The program ends in the middle of this week.

Companies in Europe have so far sold €34.9 billion euros ($43 billion) of covered bonds in June, already more than double May’s sales of 11.1 billion euros, according to data compiled by Bloomberg.

Sales totaled 169 billion euros in the last six months compared with €233.4 billion in 2009, Bloomberg data showed.

Societe Generale analysts said that investor demand has been wilting given the record €126bn issuance over the first half of 2010.

It’s likely that as a result issuance activity will slow down, as the markets are traditionally closed from mid-July to end-August.

But market economists, including Barclays Capital, Nomura International and Citigroup , have called for the ECB to extend the life of its program given the developing sovereign debt crisis.

Related by the Econotwist:

Why Optimists Are Wrong About The Euro Zone

U.S. Covered Bond Legislation: Same Shit – New Wrapping?

EU Wants To Tax Bonds Of Deficit Countries (And Old People)

Warning: Investing In Europe Can Make You Crazy

European Banks: “Leman Times Ten”

ECB Announces Bailout Program

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All Eyes On Ukraina

In Financial Markets, International Econnomic Politics, National Economic Politics on 20.11.09 at 23:56

Ukrainian Railway have defaulted on a Barclays bond. They have another, government guaranteed obligation with Deutsche Bank. If Deutsche Bank accelerates the payment interest it is then not paid, it will count as a government default, according to Moody’s.

 

“Sovereign debt isn’t a major issue in the market today and was not a main reason that caused this crisis , but historically, it is among the worst credit assets in the world.”

 Michael Milken

(Article in Norwegian, links to sources in English)

ukrainian-railway_morkt.jpg

Den statlige ukrainske jernbanen har problemer med å betale tilbake sine lån. En obligasjon hos Barclays har allerede forfalt. Hvis ikke lånene, inkludert renter, blir betalt vil det regnes som en statlig konkurs.

Ukrainian Railway ikke klart å gjøre opp for seg i tide på et obligasjonslån pålydende 110 millioner euro (pluss 8 millioner i renter) hos den britiske storbanken Barclays.

I tillegg har det statlige jernbaneselskapet et obligasjonslån hos Deutsche Bank på 700 millioner euro som forfaller om kort tid.

Ifølge finansbloggen Zero Hedge har kredittvurderingsselskapet Moody’s i London sendt ut et analysenotat hvor de skriver:

  

”Ukrainian Railway defaulted on a Barclays bond. They have another, government guaranteed obligation with DB. If DB accelerates the payment & IF it is then not paid, it will count as a government default”

 

 

Ukraina er det landet I Øst-Europa som har største samlingen råtne lån. Hele 30 prosent av alle lån i landet var defekte ved utgangen av andre kvartal i år, ifølge Reuters.

Ukraina ligger an til en økonomisk vekst i 2009 på minus 15 prosent.

Landet har allerede mottatt krisehjelp fra det internasjonale pengefondet IMF en gang.

Utviklingen i Ukraina følges nå nøye av både investorer, kreditorer og ratingbyråer.