"A great deal of focus has been given to the staggering amount of equity (tier-1) capital European banks will need to raise in the near future. Between Basle III and negative performance (which is a direct hit to the equity), capital is a real issue.
Just as difficult will be the implementation of new liquidity rules particularly given the dearth of liquid assets in the eurozone. Everyone is also very focused on thematurities of sovereign debt this year. But one issue that markets may not have fully considered is the immense amount of private debt European banks will need to roll this year.
In 2010 the difference between maturing bank bonds and newly issued debt was a deficit of only EUR 3bn. Banks had no trouble rolling the vast majority of their debt as the chart below shows..."
at http://pragcap.com/maturing-e-u-bank-debt-to-hit-a-wall-in-2012
Just as difficult will be the implementation of new liquidity rules particularly given the dearth of liquid assets in the eurozone. Everyone is also very focused on thematurities of sovereign debt this year. But one issue that markets may not have fully considered is the immense amount of private debt European banks will need to roll this year.
In 2010 the difference between maturing bank bonds and newly issued debt was a deficit of only EUR 3bn. Banks had no trouble rolling the vast majority of their debt as the chart below shows..."
at http://pragcap.com/maturing-e-u-bank-debt-to-hit-a-wall-in-2012
