Banks Dumped Eurozone Debt In Third Quarter
The latest report from the Bank for International Settlements (BIS) shows that international banks cut lending to Italian, Spanish, and French banks, while loading up on German, Japanese, and US debt. According to the BIS, banks cut lending to Italy…
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The latest report from the Bank for International Settlements (BIS) shows that international banks cut lending to Italian, Spanish, and French banks, while loading up on German, Japanese, and US debt.
According to the BIS, banks cut lending to Italy by -23%, to France by -21%, and to Spain by -10%. German bunds took in $65.3 billion and US Treasuries raked in $77.2 billion. The BIS keeps data on 30 countries, not including China which is the largest foreign holder of US debt.
France shed the most Italian sovereign debt but also cut holdings in German and Italian bank debt. The French increased their holdings of US debt by 39%, or $41.3 billion.
US banks increased its holdings of German sovereign debt by 72%, or $42.6 billion, at the same time that the banks cut French holdings by about -25%.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.