Feb 20, 2012
- Hugh Leask
Tenders Seen As Only A Partial Funding Solution, Despite Rally
The rally in certain European peripheral countries driven by the recent flurry of tender offers in securitizations could prove short-lived, as analysts in London warn buy-backs alone will not solve banks’ funding needs.
Europe’s securitization market has seen a swathe of tender offers on bonds since the start of 2012. Citigroup analysts in London said the drive for discounted tender offers among both core and peripheral banks is being fuelled by both the European Central Bank’s second three-year Long-Term Refinancing Operation (LTRO), which kicks off on Feb. 29, and the European Banking....