Despite a recent ‘game changer' in the ECB's LTRO, Alan Thein, co-manager of Legal & General's multi-manager range, warns the European debt drama is far from over.
Europe continues to demand (and seems to crave) the limelight. With the European Central Bank's (ECB) second long-term refinancing operation (LTRO) having just been completed at the end of February, under the stewardship of "Super" Mario Draghi, the region's banks have now been provided with a simply stunning amount (more than €1trn) in three-year loans. The decision to provide essentially unlimited and cheap liquidity to the banks has been a game changer, alleviating major funding issues and preventing a credit crunch. So, job done then? If only it was that simple. The ECB has expres...
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