Breaking Down Europe's 2010 Bond Issuance

Tyler Durden's picture

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Assetman's picture

As can be seen, there is a cash crunch for the Eurozone in the Feb-April period as €324 billion in near-term Bills have to be rolled over, while for Bonds the redemption peak hits in Q3, when €176 billion in Bonds have to be redeemed, while coupon payments peak at the same time. Focusing on rollover risk indicates that while Spain, whose 21% of debt rollover concern had been discussed previously, is at risk, Italy is just as much in jeopardy, with 20% of debt requiring to roll in 2010.

Given the weakness in the Euro, and the US need for Treasury debt issuance, Uncle Ben and Timmy could really screw the EU nations royally, if they so wanted.  My guess is that they won't, as it might spark a huge surge in interest rate volatility worldwide.

The folks at JP Morgan probably wouldn't approve of that... well, unless they are actually counting on volatility with all those derivative bets.

Anonymous's picture

am liking the yields on the 10 year & 30 year treasuries lately.. yummy..

Anonymous's picture

Italy has got a large public debt but an extremely low private debt compared with other UE (world) nations, in this situation watching only the amount of public debt cannot be the right way to describe the situation and rolling now 20% of debt with low rates can be an opportunity.

cantstopselling's picture
cantstopselling (not verified) Feb 11, 2010 6:26 PM
THE DORK OF CORK's picture

Looks like the folks at the Irish National treasury management agency did a good job and we look like staying afloat for 2010 at least.

Although I expect a tougher budget for next year which will be interesting to say the least.

Roll on 2011 for a rest........

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