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European MFI exposure to domestic sovereign debt below peak, but still elevated

  • The exposure of Europe's major financial institutions to domestic sovereign debt is on the rise, "now 9% of assets, up from a trough of 6% in September of 2009," FT writes.
  • Data from Citi shows European banks' total exposure (as a percentage of their balance sheets) to the general government debt of the country in which they are domiciled is generally below peak levels but is still well above the historical average for most of the periphery including Spain, Italy, Portugal, and Ireland.
  • "Although increased exposures are clearly part of ‘financial repression’ and ‘carry trade’, part of this is also a ‘natural’ trade-off from ongoing balance sheet deleveraging," Citi says.
  • Europe financials ETF - EUFN
  • Relevant European financials: DB, SAN, BBVA, NBG, BMDPF
From other sites
Comments (3)
  • stocknerd
    , contributor
    Comments (1274) | Send Message
     
    I was in the EU countries for a year. NONE of the banks are selling real estate cheap. They are holding and praying that prices return to highs. There are NO great deals on housing in any EU country. Not bloody one. I looked.
    28 Nov 2013, 08:09 PM Reply Like
  • Tufenk
    , contributor
    Comments (963) | Send Message
     
    Who is next in this scenario as reported by Reuters : UK's Serious Fraud Office may launch RBS criminal probe -report. http://reut.rs/1eFbcIZ
    29 Nov 2013, 03:30 AM Reply Like
  • San Dividendo
    , contributor
    Comments (13) | Send Message
     
    "RBS criminal probe" is British English.

     

    "JP Morgan has been paying a series of fines for financial irregularities, the latest being $13 billion" is American English.
    29 Nov 2013, 04:44 PM Reply Like
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