Italy set to turn the corner

Obbligazioni Bancarie Garantite supply of anywhere between €10bn and €15bn is expected by analysts in 2016, meaning Italy will be the fourth largest issuance region for euro covered bonds next year. House prices are bottoming out and positive economic growth is likely for the first time in years. Though non-performing loans are unsettlingly high, they should peak in 2016, suggesting that the overall picture is starting to look encouraging.