of Morya Longo
three. Intesa Sanpaolo has made the third securitization of the last two weeks. Yesterday in fact "transformed" a package of mortgages 193mila € 13 billion of bonds. If you add the other two operations are carried out by team led by Corrado Passera in the last 15 days, the count rose to 20 billion. One might ask: who could have never bought this mountain of titles in the year of the mortgage-bond does not nobody wants? The answer is obvious: they have bought the same Intesa Sanpaolo. Before issuing them (through the SPV Adriano Finance 2) and then acquired them. A ring that, ultimately, did a bit 'all: think that only in the last two months the Italian banks have built 13 securitizations for a total of about 55 billion euro. And almost all have placed this mountain of bonds themselves. With a goal: to have more titles to be delivered to the European Central Bank lending.
Fashion securitization car-buying is the daughter of a liquidity crisis that has paralyzed the financial world for months. Since the outbreak of the subprime storm, poor trust between banks has in fact literally frozen the interbank sector: the market in which institutions have always lent money to each other is suddenly gone. Rates (the famous Euribor) have flown to the stars and the exchange of money have been reduced to a flicker. For European banks, therefore, in this context has remained one last hope: the European Central Bank. It has been the central bank in Frankfurt for months to inject huge amounts of liquidity into the system. In short, by Frankfurt banks across Europe have been drawn for months the funds necessary to move forward. And still do.
But the European Central Bank does not operate as a "cash machine" to obtain funding, which are provided every Tuesday via a rod mechanism, banks must deliver bonds as collateral. In short, the European institutions may apply to the ECB all the cash they want, provided they give in exchange for the bonds. The banks, therefore, to be able to "pick up" must have as many bonds. Hence the idea of \u200b\u200bmaking the self-securitisations. Given that hold the loans in the portfolio is useless, banks prefer to sell them to a SPV and buy bonds (guaranteed by the same loans) that the company issues. So funding for home delivered to thousands of private citizens, they become fixed income securities so rated. And the titles themselves become time "bargaining chips" to obtain supplies from the European Central Bank. Moral: unnecessary mortgage bonds become very useful. Magic of finance.
why all banks are active in this operation. The case of Intesa Sanpaolo - who has also collaborated Banca IMI - is emblematic. Currently, the group - they know from the headquarters - did not need money. The 22 billion bond expired in 2008 were repaid by collecting 30 billion from investors: Intesa Sanpaolo currently has 8 billion by then to begin to repay the 29 billion of bonds, which expire in 2009. If the market will be normal, or at least acceptable, will issue new and refund the old bonds. As has always done and like everyone else. If the market will be blocked for reasons unforeseeable today, the group could use 30 billion of bonds with various securitization born in 2008 to borrow funds from the ECB. Whatever you do, in fact, Intesa Sanpaolo should have no problem. I just securitized bonds are just as "prudential cushion." And prudence, these days, is certainly the most valued asset in the market.
m.longo @ ilsole24ore.com
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