So Far, Rabobank Is OK
November 26th, 2011We keep a substantial portion of our savings with Rabobank. Since Rabobank is a Dutch bank, I’ve been closely monitoring the financial chaos in Europe. As of now, Rabobank indicates that it has prepared for the, “Highly unlikely scenario that we’re now living in,” and won’t need to raise any additional capital until 2013.
In other news, noncompliant sends, Europe liquidity crisis has a number: $30 trillion. So, yeah.
Via: Bloomberg:
Rabobank Nederland, the fourth- largest corporate bond issuer in Europe, plans to halve sales of senior debt next year to reduce its reliance on a market roiled by the sovereign crisis.
The world’s highest-rated private lender will seek 20 billion euros ($27 billion) to 25 billion euros from senior bond offerings in 2012, according to Michael Gower, the head of long- term funding at Utrecht-based Rabobank. Investors will be denied AAA rated securities that returned 3.3 percent this year, more than double the average for securities in Bank of America Merrill Lynch’s EMU Corporates, Banking index.
“We’ve been extremely conservative by raising a significant amount of capital over a number of years, just to be prepared for what was a highly unlikely scenario that we’re now living in,” Gower said in an interview. “The bank doesn’t need to borrow until 2013 so there’s no pressure.”
Rabobank raised more than 40 billion euros from senior debt sales this year, 43 percent more than it needed to refinance securities coming due. The lender is stockpiling reserves as the debt crisis intensifies, sending borrowing costs in core economies outside Germany to euro-era records and driving relative yields on bank bonds to the highest since May 2009.
I bugged out of Rabobank early this year. Had a small amount there. Got skittish. You KNOW I’m an ultra doomer, right?
They just put this on the front page of:
http://www.rabodirect.co.nz
Rabobank statement on European debt crisis
http://www.rabodirect.co.nz/rabodirect-news-and-marketing/2011/18-November-2011-Rabobank-statement-on-European-debt-crisis.aspx