The Mumble: Where will dash for LTRO cash end?

Perhaps last year’s deep dark secret as far as SSA bookbuilding was concerned was issuers leaning on lead managers to commit vast chunks of their capital to deals. Not in the classic sense of underwriting as such but by encouraging them to put huge orders into the book dressed up as genuine treasury desk interest. It is a shocking practice but so far this year, indications are that the LTRO cash now washing around the markets means borrowers are leaning on banks in a whole new way. It could prove to be just as unhealthy for the market.