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Economy
In reply to the discussion: STOCK MARKET WATCH -- Thursday, 12 April 2012 [View all]Roland99
(53,342 posts)59. Reawakening of eurozone crisis fuels concerns
http://edition.cnn.com/2012/04/11/business/eurozone-crisis-reawakening/index.html?hpt=hp_bn1
But the market is now subtly re-evaluating the European Central Bank's cheap three-year loans to banks, known as LTROs or longer-term refinancing operations.
When they were announced in December, their effects were at first largely ignored, but then they were described by many as a "game-changer" in January. Now the worries have resurfaced with a belief that they have done nothing to help the particular weaknesses in the eurozone.
"The idea that the LTRO solved all issues was just incorrect," says Nick Griffiths, head of global rates at Legal & General Investment Management. "For the markets it was a lifeline to give some breathing space but it did nothing for the fundamentals."
Although he expected Spanish yields to rise and was accordingly short on peripheral bonds, the timing of the move this week caught him somewhat by surprise.
When they were announced in December, their effects were at first largely ignored, but then they were described by many as a "game-changer" in January. Now the worries have resurfaced with a belief that they have done nothing to help the particular weaknesses in the eurozone.
"The idea that the LTRO solved all issues was just incorrect," says Nick Griffiths, head of global rates at Legal & General Investment Management. "For the markets it was a lifeline to give some breathing space but it did nothing for the fundamentals."
Although he expected Spanish yields to rise and was accordingly short on peripheral bonds, the timing of the move this week caught him somewhat by surprise.
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