This page has been archived and commenting is disabled.

Spain's BBVA Unable To Renew $1 Billion In Commercial Paper Funding

Submitted by Tyler Durden on 05/26/2010 09:05 -0400

Commercial Paper

More troubles for both Spain and the Commercial Paper market. Spanish top bank BBVA is said to have be unable to renew a $1 billion commercial paper line, according to the WSJ, which touches on the topic we discussed yesterday first about complications developing in the top-tier ECP market. BBVA still has substantial european-based funding and deposits, and another $9 billion in CP, which will likely also soon be pulled. This will certainly put further pressure on CP spreads, as the European liquidity crisis is alive and well. The news has impacted both the EURUSD and the price of European financial firms, which have sagged since this news has come out.

- advertisements -

Wed, 05/26/2010 - 09:09 | 373941 Sudden Debt

good good... soon it's time to go hunting for a second holiday home over there. With real estate down 67%, it's going to be bargain hunting :)

Wed, 05/26/2010 - 10:32 | 374089 Rider

Too soon, you can get a 10% to 15% discount on top of that. Wait the austerity measures/Tax deflation settles, do not rush it.

Wed, 05/26/2010 - 09:12 | 373943 MrTrader

I suppose JCT phone is already ringing. Hello Ben, is your helicopter ready to go ?.1 billion EURUSD Swap ? Where is my TARGET2 ( (Trans-European Automated Real-time Gross Settlement Express Transfer System)) button ? Done.

Wed, 05/26/2010 - 09:19 | 373949 john_connor

Front page of bloomberg. Is this foreboding? For some reason it doesn't transfer over when I submit the comment. However it shows the Dow down -10,066, or -99.99%

Update: they corrected the problem.

Wed, 05/26/2010 - 09:34 | 373973 LeBalance

LOL! Prescient!

Wed, 05/26/2010 - 09:17 | 373951 Xibalba

Should take 'em about .7 minutes to print

Wed, 05/26/2010 - 09:19 | 373955 Sudden Debt

could...

but they seem to have logistical problem concerning the supply of paper.

The Amazon rainforest just called, they just cut the last three...

Wed, 05/26/2010 - 09:17 | 373953 williambanzai7

Oh my, good thing Turbo Tim is over there...

Wed, 05/26/2010 - 09:21 | 373959 asdf

that's what I just saw

http://img243.imageshack.us/img243/6794/dowjones.png

Wed, 05/26/2010 - 09:29 | 373966 Cheeky Bastard

WTF.

Hopefully only a typo and not an Algo Crash.

Wed, 05/26/2010 - 09:43 | 373990 toomuchmerrilhoge

looks like someone fat-fingered a 't' instead of a 'b' this time.

Wed, 05/26/2010 - 09:28 | 373965 Cheeky Bastard

This is probably the point of no return. Its impossible to recover after such a blow; CP market is the lifeline for banks; deny any of the banks access to it; game over [Remember LEH]. Go short, buy CDS and wait. Either you will profit by unwinding the trade before BK by trading spread or you will profit due to a credit event. Basically; risk free. Even if the ECB buys all bonds outstanding on the secondary market; there is no turning back. If you want to emulate Goldman Sachs strategy short the seller of the CDS and go short the stock. Two birds with one stone.

Wed, 05/26/2010 - 09:31 | 373970 SDRII

maybe Ben will reoppen a global CP facility provided of course you sell more then $5 worth of goods in the US

Wed, 05/26/2010 - 09:36 | 373974 Cheeky Bastard

That, or he will open up a Global Maiden Lane where with one dollar of collateral you can borrow 10 dollars with a negative 0.25 rate ...

Wed, 05/26/2010 - 09:32 | 373968 SDRII

No need to worry. The Fed can now buy index futures in China after Tim hammered out a deal for QII to buy them after a fruitful trip

Wed, 05/26/2010 - 10:02 | 374023 bugs_

BBVA bought some American banks, wonder why?

Had to change banks they bought mine.

Wed, 05/26/2010 - 10:15 | 374052 Rider

"European liquidity crisis is alive and well"

I do not think so. Ben, on his currency promiscuity, has the new Swap Party line ready to kill the USD.

PONZI FOREVER

Wed, 05/26/2010 - 15:17 | 374970 RockyRacoon

The End Is Near

A lousy Billion? What is the world coming to?

Wed, 05/26/2010 - 18:12 | 375648 Buck Johnson

For BBVA in Spain unable to renew just a billion commercial funding should scare us all. For one this amount is essentially nothing, they couldn't even get another bank or even the Spanish central bank to buy they debt from the person or persons or banks that own the debt. Two, if there having trouble with this amount then Spain and it's banks are essentially insolvent and are just fronting for the rest of the world. And isn't it funny that a few weeks ago spains prime minister came out to dispell a rumor that spain was needing 389 billion euros. Spain owes close to 1 trillion dollars to foreign banks and institutions. Everything is starting to make sense now, they are insolvent and are trying to keep the world from knowing and their people from knowing. Spain had or has the worst property bubble on the continent of europe.

Have many of you noticed that it's getting harder and harder for the US stock exchange to end the day on the positive, it's almost as if they have reached the capabilities of the PPT and are trying everything from the so and so is broken to "accidentally" pulling the power cord. Europe is black swan number one and the states in the US are the second black swan (bankruptcy)

Thu, 05/27/2010 - 00:45 | 376275 thisandthat

How much is 1T in Real Madrid shirts?

Sun, 06/20/2010 - 01:36 | 423202 mbtshoe

Spain's BBVA Unable To Renew $1 Billion In Commercial Paper Funding

Comment viewing options