The first wave of TLTRO reached 82,6 billion euros. The data was released this morning by the European Central Bank, which today closed the first auction of "Targeted longer term refinancing oparations", i.e. subsidized loans that the Eurotower guarantees to banks with the obligation to use the resources to reactivate the credit . The result is lower than the average forecast elaborated by analysts, which was around 150 billion euro. On the other hand, the forecasts were very different: according to some experts, in fact, the entity of the operation should not have exceeded 37 billion.
255 banks and credit institutions participated in today's auction. It was the first of eight operations of this kind that the ECB decided to carry out, for a maximum amount of one thousand billion euros. The fact that the amount communicated today is lower than expected is also linked to the fact that the ECB had indicated the potential of funds eligible at 400 billion euros in the first two TLTRO auctions, both of which will be held this year. The second auction will be in December and seems unlikely to reach 320 billion euros.
During his recent speech at a seminar in Milan, which preceded the meetings of the Eurogroup and Ecofin, the president of the ECB Mario Draghi announced that the institution aims to expand the size of its balance sheet to the peak that had been reached in early 2012 , or about 1.000 billion more than current levels (2 trillion).
Analysts, however, tend to exclude that the Tlters reach one trillion. In addition, the repayments of previous long-term subsidized refinancing (Ltro) would still have to be compensated. If the ECB actually wanted to increase its balance sheet to the values of the beginning of 2012, it would therefore have to integrate the remaining quota with the plan for the purchase of securitized bank loans (ABS) and covered bonds.
If even this maneuver, the details of which are expected in October, were not enough, at that point the Eurotower could launch a vast program of securities purchases, a Quantitative Easing (Qe) on public and private issues, taking as a model the operation successfully tested by the Federal Reserve.
7,75 BILLION TO UNICREDIT, ALL INTENDED FOR ITALY
Unicredit obtained 7,75 billion euros in today's Tltro auction. This was announced by a spokesman for the institute, specifying that today's funding is entirely intended for Italy. The institute will also participate in the second auction in December, for an amount that will not exceed a total of 12 billion euros. Initially, Unicredit had assumed a total amount in the two auctions of around 14 billion. The loans that Unicredit will take in the second auction will basically go to Germany and Austria.
4 BILLION FOR INTESA SANPAOLO
Intesa Sanpaolo, on the other hand, participated in the first auction for an amount of 4 billion euro, within a maximum amount that can be requested of around 12,5 billion. The remaining amount is expected to be requested in the second transaction.
EXCHANGES ACCELERATE, BANKS IN THE LEAD
European stock markets accelerated after the ECB's announcement on the Tltro auction. In Piazza Affari, the Ftse Mib rose by 0,6% and the Ftse All Share by 0,57%. Banking stocks, well tuned since yesterday and again this morning, further accelerated the race. Ubi gains 2,51%, Bpm 2,22%, Unicredit 1,73%, Mediobanca 1,71%, Banco Popolare 1,57%, Intesa Sanpaolo 1,22%. Only Mps (-0,22%) and Bper (-1,3%) were weak.
