Europe’s banks, especially from Italy, need to set in the currently difficult market environment, increasingly on a more expensive refinancing. The higher risk premiums related to the Italian institutions, especially the Deutsche Bank, Michael Huenseler, managing Director and banking expert of the Munich-based asset Manager Assenagon, observed. The returns for August bonds issued by Commerzbank and Deutsche Bank have risen in the meantime, which is associated with corresponding losses.

Markus Frühauf

editor in the economy.

F. A. Z.

Christian Geinitz

economic correspondent for Austria, Eastern and South – Eastern Europe and Turkey, headquartered in Vienna.

F. A. Z.

But much more dramatic is the Situation in Italy, although the risk decreased premiums for government bonds significantly, since then, the government of right-wing Lega and populist, more willingness to negotiate shows Five star movement in relation to Brussels. According to Huenseler borrowing even larger Italian banks on the capital market is difficult and probably only at the expense of greater price concessions possible.

“Smaller banks are likely to be more affected and it is difficult to gain new resources.” Your Situation is coming to a head in the view of Huenseler. Therefore, it is possible that you are still dependent on the support of the European Central Bank (ECB), in order to Finance cheap.

This relates to the four particularly cheap, and the extraordinary long-term tender (TLTRO), have taken over the Italian banks between June 2016 and March 2017, a total of 239 billion euros. The first Tender will be in June due 2020, but from a maturity of less than one year, he may no longer be considered to be an important regulatory Liquidity ratio (NSFR) of the banks.

risk premiums since January

quadrupled, Therefore, banks, which have no or only very expensive access to the market, from June 2019 under pressure. Analysts at Barclays expect a new edition of the long-term tender, especially as the economic conditions deteriorate. ECB President Mario Draghi referred to the tender transactions as an Instrument, the stand is still available. It is unclear whether the governing Council will decide at its meeting this Thursday about it.

One of the few banks in Italy, the place the bonds, Unicredit. However, the parent company of the Hypo-Vereinsbank encounters difficulties. Recently, the Unicredit, issued five-year bonds on 3 billion dollars and had to pay a risk premium of 4.00 percentage points. That was six times as high as in January. This bond was, in the words of Huenseler “Reportedly, according to Pimco”. This is one of the largest on bonds issued by specialised asset managers and is part of the Allianz group.