In just a few minutes, the ECB will announce the results of its latest liquidity operation, a scheme whereby banks can pledge a wide range of collateral in exchange for super-cheap funding for three years.
One reason people think that the first such operation — held in December — was a game changer, is that the cheap money allowed banks to buy distressed sovereign debt.
Anyway, per SocGen’s reading of the tea leaves, here’s how large banks will use the money this time:
Also, here’s a breakdown by bank.
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