Quick takeaways include : the outflows of US Money Market Funds has not just not halted , but rather has picked up - noting end of the year re-intensification ; money flows out of Europe have gone to Australia , Canada and Japan ( how long before Japan sees outflow one has to ask ) ; outflows of this magnitude have only further strained capital base of European banks and yes , the ECB is the lender of last resort - any wonder they don't want to take their losses on Greek debt ( and then Portuguese , Spanish , Italian , Irish debt ) ; but for the 600 billion LTRO in December , where would the banks be presently - how big must the Febuary LTRO be to keep the teetering banks upright ; how long will ZIRP like policies have to remain for the West , I mean really - will it last until global sovereign creditors treat the West like PetroPlus ; apart from Unicredit ( and we saw how that capital raise went down ) , where are the other capital raising exercises , what about the big banks of France ; what happens if CDS actually gets paid because credit events occur despite the best wishes of the banksters - how do these banks in Europe stay upright , and what magnitude of contagion effects cross the pond ; how much longer can stocks globally levitate like cheap magician tricks ?
U.S. prime money market funds (MMFs) continued to reduce their exposure to euro zone banks. As of month-end December, exposure to euro zone banks was approximately 10% of total MMF holdings in Fitch Ratings’ sample, a 16% decline on a dollar basis since end-November. Aggregate MMF exposure to European banks outside of the euro zone remained stable at approximately 22% of MMF holdings.Exposure to banks in Australia, Canada, and Japan each increased relative to end November and represents more than 30% of MMF assets, up from 20% of MMF assets as of end-May 2011
These, meanwhile, are the banks which MMFs are now the most exposed to:
While the following banks are now the most reliant on MMF funding:
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