Market hopes peripherals hold LTRO cash as banks pay back €137.2bn

FIG market participants are hoping that the €137.2bn of three year LTRO funding due to be repaid by 278 banks at the first opportunity next week has come mostly from strong, core European banks, rather than weaker peripheral names. The ECB has not specified which lenders are returning their funds, but the larger than expected number is being seen as positive for the region’s financial sector.