Bank CP funding needs likely slashed by TLTRO take-up

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By Lewis McLellan
19 Jun 2020

The renewed flood of central bank funding in the form of a new round of Targeted Longer-Term Refinancing Operations (TLTRO III) will put a severe dent in the supply of commercial paper from bank borrowers.

Bank issuance of bonds with tenors of a year or less is likely to decline thanks to the record €1.31tr take-up of the latest TLTRO facility this week. 

One CP dealer said: “It won’t disappear entirely. Banks will roll over bonds to ensure investors keep the positions available and ...

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