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Money markets overnight ecb borrowing jumps but seen temporary

´╗┐LONDON, March 13 Borrowing of overnight funds from the European Central Bank jumped as banks prepared to tender new Greek bonds as collateral at the central bank's refinancing operations after the country's successful debt restructure. Borrowing from the overnight facility rose to 15.6 billion euros from 632 million euros the previous day, ECB data showed on Tuesday, but this was largely expected to fall later in the week as they receive cash from the ECB's seven-day tender. The ECB stopped accepting Greek bonds early last week after the country's debt was pushed into 'selective default' as a result of its debt restructuring but lifted the ban after the deal went through at the end of the week."Newly exchanged Greek bonds were waiting to be submitted into today's ECB Main Refinancing Operation and that cash was being borrowed at the marginal rate until such funds are settled tomorrow," ICAP analyst Chris Clark said."If this is indeed what happened, we should see a similar figure being borrowed tonight before that number returns to normal once MRO funds are settled tomorrow," he said.

Bank demand for the ECB's weekly loans also rose to 42.2 billion euros from 17.5 billion euros last week, well above an average of 18 billion euros in a Reuters poll on Monday. This was likely due to banks front-loading funds to meet the level of cash they are required to keep at the ECB at the beginning of its maintenance period. The increase in weekly borrowing was unlikely to have much impact on a market that is already flush with cheap three-year cash from the ECB. Interbank rates hit fresh 17-month lows on Tuesday as the excess liquidity from the ECB's two ultra-long financing operations over the past months exerted downward pressure.

Bank-to-bank lending rates have dropped by more than a third over the last few months as a result of the 1 trillion euros the ECB has poured into the financial markets, and they are homing in on record lows they hit in early 2010. Three-month Euribor rates, traditionally the main gauge of unsecured interbank euro lending and a mix of interest rate expectations and banks' appetite for lending, fell to 0.876 percent from 0.884 percent, the lowest level since September 2010. Equivalent Liobr rates also fell.

Rates in other maturities also dropped. Six-month rates fell to 1.183 percent from 1.193 percent and 12-month rates dropped to 1.519 percent from 1.527 percent. One-week rates, the most heavily influenced by the level of cash in the system, held steady at 0.317 percent. Overnight rates slipped to 0.355 percent from 0.359 percent."With so much excess liquidity in the system, we expect Eonia to continue to trade at an approximate 10 basis points spread to the deposit facility and for Euribor fixings to continue drifting lower as tail funding risks have receded," Morgan Stanley strategist Elaine Lin said. The three-month lending rates have already dropped by over a third since the ECB announced plans to lend banks three-year money back in December, but are still well above the low of 0.634 percent they hit in early 2010.

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Rpt fitch assigns fct ginkgo compartment sales finance 2013 1 final rating

´╗┐(Repeat for additional subscribers)Dec 20 (The following statement was released by the rating agency)Fitch Ratings has assigned FCT Ginkgo Compartment Sales Finance 2013-1's ABS notes final ratings as this site Class A: 'AAAsf'; Outlook StableEUR40m Class B: 'AAsf'; Outlook StableEUR30.1m Class C: 'A+sf'; Outlook StableEUR85.9m Class D: not rated

The final ratings are based on Fitch's assessment of CA Consumer Finance's (CACF, A/Stable/F1) origination and servicing procedures in its capacity as originator and servicer of the transaction, the agency's expectations of future asset performance in the light of the current and forecast economic environment in France, the available credit enhancement and the transaction's legal structure. KEY RATING DRIVERS Fitch views the key rating drivers for the transaction as being the underlying receivables credit risk and the early amortisation triggers in place which, along with eligibility criteria portfolio limits and available CE, prevent a significant deterioration of the portfolio quality during the revolving period. In line with its criteria, the agency has taken into account possible migration to a riskier pool composition allowed by the portfolio limits. The other key rating drivers are a monthly transfer of borrowers' details, a commingling reserve and a reserve fund which, together with other provisions, adequately mitigate servicing continuity risks; and the stable to declining asset performance outlook for French consumer assets.

Credit enhancement for the class A notes was equivalent to 25.3% at closing, provided by overcollateralisation via subordination and a reserve fund. Subordination for the class A notes is provided by the class B notes (6.1%), the class C notes (4.6%) and the class D notes (13.1%). In addition, a reserve fund, representing 1.5% of the initial notes balance and primarily available for liquidity, provides credit enhancement at maturity or if an accelerated amortisation event has occurred. Finally, the transaction benefits from excess spread. TRANSACTION CHARACTERISTICS The issuance proceeds were used to purchase a portfolio of sales finance loan receivables including home equipment, recreational vehicle, new vehicle and used vehicle loans originated by CACF, the consumer finance arm of Credit Agricole (A/Stable/F1) in France. This is CACF's seventh consumer loans securitisation transaction.

The transaction envisages a 12-month revolving period, during which further receivables can be transferred to the issuer each month. The provisional portfolio amounted to EUR656m as of end-November 2013 and consisted of 83,388 loan contracts, with an average outstanding principal balance of EUR7,867 and a weighted average remaining term of 73.7 months. All the loans bear a fixed interest rate and are amortising with constant monthly instalments. RATING SENSITIVITIES Fitch tested the rating sensitivity of the notes to various scenarios, including an increase in the base case default rate and/or a decrease in the base case recovery rate for the portfolio. The model-implied sensitivities indicate that an increase in the base case default rate by 50% together with a decrease in the base case recovery rate by 50% may result in a five-notch downgrade of the class A notes, to 'Asf' from 'AAAsf', of the class B notes to 'BBB+sf' from 'AAsf' and of the class C notes to 'BBB-sf' from 'A+sf'. A new issue report, including further information on transaction related stress, key rating drivers and rating sensitivities, as well as material sources of information that were used to prepare the credit rating, is available at this site Link to Fitch Ratings' Report: FCT Ginkgo Compartment Sales Finance 2013-1here var $relatedItems = $('lia "/article/idUSFWN1EU0JJ"BRIEF-Sesac says it will be acquired by Blackstone/a/lilia "/article/riyad-bank-dividend-idUSD5N1E9002"Saudi\'s Riyad Bank recommends lower cash dividend for H2 2016/a/li'), $relatedItems = $relatedItems.slice(0,10), relatedBlockLimit = Number('6'), relatedItemsTotal = $relatedItems.length, $paragraphTags = $('#article-text p'), contentParagraphs = 0, minParagraphs = Number("8"); for (i=0; i $paragraphTags.length; i++) { if ($paragraphTags[i].innerText.trim().length 0) { contentParagraphs = contentParagraphs + 1; } } if (contentParagraphs minParagraphs) { setTimeout(function(){ if (relatedItemsTotal relatedBlockLimit) { $('.first-article-divide').append('div class="related-content group-one"h3 class="related-content-title"Also In Financials/h3ul/ul/div'); $('.second-article-divide').append($('.slider.slider-module')); $('.third-article-divide').append('div class="related-content group-two"h3 class="related-content-title"Also In Financials/h3ul/ul/div'); var median = (relatedItemsTotal / 2); var $relatedContentGroupOne = $(' ul'); var $relatedContentGroupTwo = $(' ul'); $.each($relatedItems, function(k,v) { if (k + 1 = median) { $relatedContentGroupOne.append($relatedItems[k]); } else { $relatedContentGroupTwo.append($relatedItems[k]); } }); } else { $('.third-article-divide').append($('div class="related-content group-one"h3 class="related-content-title"Also In Financials/h3ul/ul/div')); $('.related-content ul').append($relatedItems); } },500); } Next In Financials BRIEF-CME Group reached record average daily volume of 15.6 mln contracts in 2016 * Cme group reached record average daily volume of 15.6 million contracts in 2016, up 12 percent from 2015 Dubai Islamic Bank requests proposals for dollar sukuk - sources DUBAI, Jan 4 Dubai Islamic Bank (DIB) has asked banks to submit proposals to arrange a potential U.S. dollar-denominated sukuk issue, sources familiar with the situation said on Wednesday. BRIEF-Colliers International UK acquires hospitality asset management firm * Colliers international uk acquires market leading hospitality asset management firm MORE FROM REUTERS window._taboola = window._taboola || []; _taboola.push({ mode: 'organic-thumbnails-a', container: 'taboola-recirc', placement: 'Below Article Thumbnails - Organic', target_type: 'mix' }); Sponsored Content @media(max-this site) { #mod-bizdev-dianomi{ height: 320px; } } From Around the Web Promoted by Taboola window._taboola = window._taboola || []; _taboola.push( { mode: 'thumbnails-3X2', container: 'taboola-below-article-thumbnails', placement: 'Below Article Thumbnails', target_type: 'mix' } ); window._taboola = window._taboola || []; _taboola.push