Who Buys Today Actually Italian Government Bonds?

By | May 1, 2014

Goldman has been active not only in the spot market: Goldman turned Italian positions by means of credit derivatives Goldman Sachs Group anyway, not, as Bloomberg and other media reported. Goldman reduced exposure in Italian Government bonds by 92 percent to $ 191 million in the second quarter, as is evident from a corresponding report to the authority. For comparison: In the first quarter, Goldman had been Italian bonds on the buyer side. “Goldman was active not only in the spot market: Goldman turned Italian positions by means of credit derivatives: one had considered overall still a positive at the end of the first quarter” Italy exposure of around 2.4 billion euros in the books, was this minus 977 million euros by the end of June 2012. Who buys Italian bonds? While major international banks and local institutional investors give a wide berth to Italian Government bonds (or mix this up only in homoeopathic doses as yield-pick), Italian large investors, particularly banks and insurance companies, to access. So keep Italy banks already 316 billion euros of Italian Government bonds on their books, which alone last June 14 billion added. Thus the highest value of ever achieved, as shown in statistics of the Banca d’Italia. Italian money houses have captured most of the Government bonds at auctions, because there was a lack of foreign investors”, cited as Bloomberg Nicholas Spiro, Managing Director at Spiro sovereign strategy in London. “The restraint in Italian and Spanish Government bonds will continue according to Spiros: the question is how much longer they (the banks) will be able to fill the gap if foreign investors further from Italian and Spanish Government bonds away control”. Pyramidisierung or bankruptcy procrastination? Basically, this game lucrative for banks can be perpetuated, as long as they leave government bonds at the ECB as collateral and that new funds at an interest rate of 0.75 percent for additional government bond purchases to returns by receive five to seven percent. The carousel is merrily continues to rotate, but Italian banks – still rising – have borrowed more than 283 billion euros at the Central Bank by Editorial: press agency Landers

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