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Italian Bad Loans Hit Record High - Up 23% YoY

Tyler Durden's picture




 

With all eyes gloating over Ireland's recent ability to issue debt in the capital markets once again (and now with 10Y trading only 40bps above US Treasuries), Europe's game of distraction continues. However, while spreads (and yields) tumble in all the PIIGS, with Italian yields at almost 7-year lows, it is perhaps surprising to some that Italian bad loan rates are at their highest on record. Having risen at a stunning 23% year-over-year - its fastest in 2 years, Italian gross non-performing loans (EUR149.6 billion) as a proportion of total lending rose to 7.8% in November (up from 6.1% a year earlier). As the Italian Banking Association admits in a statement today, deposits are declining (-1.9% YoY) and bonds sold to clients (-9.4% YoY) as Italy's bank clients with bad loans have more than doubled since 2008.

 

Italian bad loans continue to soar - entirely ignored by the nation's bond market particpants (why worry!?)

 

and if that chart does not make you rub your chin in utter delerium...

Ireland or US?

 

Charts: Bloomberg

 

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Tue, 01/21/2014 - 20:18 | 4353735 buzzsaw99
buzzsaw99's picture

seen that shnauzer pattern before somewhere

Tue, 01/21/2014 - 20:33 | 4353777 frankTHE COIN
frankTHE COIN's picture

Are we talkin Italian sausage or Italian Bonds ?

Tue, 01/21/2014 - 20:37 | 4353791 buzzsaw99
buzzsaw99's picture

compare a picture of a shnauzer to the bernank. i defy you to tell the difference. both will eat sausage so fast your head will spin.

Tue, 01/21/2014 - 20:18 | 4353736 knukles
knukles's picture

Holy-See It!

 

Tue, 01/21/2014 - 20:20 | 4353743 starman
starman's picture

I blame this purely on the Vatican!

Tue, 01/21/2014 - 20:25 | 4353757 Tasty Sandwich
Tasty Sandwich's picture

Someone needs to lend more money to these people so they can repay their loans.

Tue, 01/21/2014 - 20:29 | 4353769 knukles
knukles's picture

Yeah, do a Greek on 'em

Bend over !

Tue, 01/21/2014 - 20:34 | 4353778 i_call_you_my_base
i_call_you_my_base's picture

Speaking of...

"Nonperforming loans (NPLs) in Greece will rise to a staggering 40 percent by the end of 2014, according to Pricewaterhouse Coopers experts who used the same parameters that BlackRock Solutions did during local banks’ last stress tests."

http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_21/01/2014_536700

Tue, 01/21/2014 - 20:55 | 4353845 Colonel Klink
Colonel Klink's picture

Inuendo, also known as an Italian suppository.

Tue, 01/21/2014 - 20:30 | 4353767 ebworthen
ebworthen's picture

Mama Mia!

Shame, pretty country.

The Italians at Oktoberfest were a blast.

I imagine Spain is in similar shape; the Euro seems to have been a better deal the further North you go.

p.s. - Pretty sure the FED and the Treasury are going to help those Italian banks out with some good 'ole U.S. Taxpayer slush money (hush money?) via the IMF.  Cue Lagarde...

Tue, 01/21/2014 - 20:29 | 4353771 knukles
knukles's picture

Nanook won't even trade his Bitcions for Euros at any price.
Booze...
Now that's another story

Tue, 01/21/2014 - 21:13 | 4353921 NoDebt
NoDebt's picture

Private loans going bad vs. government borrowing costs?  Meaningless.  In the new normal, why would a government be in any way affected by the economy that underlies it?

Tue, 01/21/2014 - 23:52 | 4354368 Oldwood
Oldwood's picture

There is nothing more bullish than an economy without consequence.

Tue, 01/21/2014 - 21:23 | 4353953 Ulterior
Ulterior's picture

let me guess - NO COLLATERAL?

Tue, 01/21/2014 - 23:04 | 4354267 BeanusCountus
BeanusCountus's picture

Now this is the stuff I come to ZH for. Will look for more confirmation. True, only one data point. But telling? No matter how many talking heads say things are improving in EU, this is something that should make everyone think. EU "guarantee" on all of this garbage is going to cost someone something. I dont want to be the "someone". And now everything is so interconnected, these are things that can ignite the next domino chain.

Wed, 01/22/2014 - 00:18 | 4354433 CheapBastard
CheapBastard's picture

Not surprising. Businesses and officials are borrowing to the max globally knowing they can just walk away with no consequences. It started here on Wall Street and now these copy cats in China, Italy, etc are doing the same thing.

Wed, 01/22/2014 - 03:00 | 4354672 skydrake
skydrake's picture

"Italian Bad Loans Hit Record High"

 

US loans too

Wed, 01/22/2014 - 03:03 | 4354678 Ourrulersknowbest
Ourrulersknowbest's picture

Here in ireland the "message" is being broadcast that we are on the road to recovery.the sheep are clapping like seals at feeding time even though this recovery fails to show up in the real world.
Sigh...........
Now off to Facebook to like away the hours in blissful ignorance .

Wed, 01/22/2014 - 04:51 | 4354757 hugovanderbubble
hugovanderbubble's picture

Italian Banks are all in default

Wed, 01/22/2014 - 08:42 | 4354905 Duude
Duude's picture

How long before Italians start calling for a break from the EU and kick-starting the Lira? LOL

Wed, 01/22/2014 - 08:56 | 4354914 john.smith
john.smith's picture

hey, in the new stupid, as long as bond yields remain low and inflation is nowhere in sight, what's the problem??

Sat, 01/25/2014 - 05:45 | 4366055 shawnmike
shawnmike's picture

Meanwhile the controlled sell-off in US equities is just that, completely controlled, and ready for the late day ramp. All while they go mad for bonds. Whatever, don't think anyone's jumping from windows on Wall Street just yet

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