Refinancing

Third, the European Central Bank, partly in response to the previous two developments, has expanded its balance sheet in a dramatic way with this week's €489 billion $640 billion Long-Term Refinancing Operation.

The Euro's Almost Happy New Year Simon Nixon 2011

The potential yield pick-up is huge, offering a chance to make big profits: the cost of funds via the Long-Term Refinancing Operation is likely to be around 1%, while yields on 10-year Italian and Spanish bonds are 6.5% and 5%, respectively.

Staring Into the ECB's Mini Bazooka Simon Nixon 2011

Michael Hewson, market analyst at CMC Markets, said:It has been speculated that the new 3-year LTROs Long Term Refinancing Operations initiated by the ECB last month have played a large part in the success of bringing yields down as banks take advantage of the low borrowing costs to play the carry on sovereign bond yields.

Eurozone crisis live: S&P cuts French credit rating on night of downgrades - 13 January 2012 2012

Only gradually did it dawn on markets that the Long Term Refinancing Operation had removed the risk of a systemic banking meltdown, while also reducing the pressure in government and bank funding markets.

This Optimism Could Prove Contagious Simon Nixon 2012

For starters, the European Central Bank's Long-Term Refinancing Operation, announced in December, has flooded wobbly European banks with money.

Is It Time to Buy Europe? Ben Levisohn 2012

Mr. Bronner said Swedbank won't participate in the European Central Bank's program in which it gives three-year loans at low interest rates, known as the Long-Term Refinancing Operation.

Swedbank to Cut Costs as Profit Dips Gustav Sandstrom 2012

The first Long-Term Refinancing Operation in December injected €193 billion $248.3 billion of net new liquidity into the euro-zone financial system, enough to take care of short-term bank-funding needs, reducing the risk of a systemic crisis and easing pressure on banks to shrink their balance sheets and cut domestic lending.

Sugar Rush for Euro-Zone Markets Richard Barley 2012

The broad participation in the program, known as the Long-Term Refinancing Operation, fueled a sense of euphoria among many bank executives and investors that the worst of the Continent's two-year banking crisis was over.

Some Europe Banks Shun ECB Loans David Enrich 2012

The cheap money flow, known as Long Term Refinancing Operation, is throwing a lifeline to European banks that risked being shut out of the funding market back in October and November, preventing a Lehman-type bank failure that could have destroyed the single currency only three months ago.

Yahoo! News: Business - Opinion 2012

The European Central Bank has managed to stabilize the banking system by offering huge amounts of funding to banks under its Long Term Refinancing Operations LTRO program.

The Globe and Mail - Home RSS feed MARTIN MITTELSTAEDT 2012