Summary - LTRO Represents 20% Of European Bank Deleveraging Needs

As warned here repeatedly, there are only two ways of looking at today's LTRO - a risk on perspective according to which European banks will double down even more, load up on carry, and buy even more sovereign debt, knowing full well the market will eventually punish them for holding this paper, or a risk off, in which banks will shore up capital to prevent massive asset sales and equity dilution in the upcoming deleveraging wave. And with multi-billion BWICs already hitting the tape in

Read more ...