Hungary's News Means Pressure for HUF
NEW YORK ( BBH FX Strategy) -- There were two notable events for Hungary since the start of the week: The results of Hungary's first auction under the new two-year loan facility, and the resignation of President Pal Schmitt, a supporter of the ruling Fidesz party. Neither event had an initial market impact, but both could have potential consequences for Hungarian assets going forward.
The take up for the first auction of the Hungarian mini-Long Term Refinancing Operation facility was lower than expected at HUF 56 billion (expectations were for as much as HUF100 billion). As widely reported, the weak demand was attributed to the comfortable cash position by local banks and their reluctance to accept the conditions associated with using the facility.
|The Hungarian capital, Budapest|
Recall that banks borrowing from the facility must keep gross outstanding loans to the corporate sector at or above the December 2011 levels during the two-year term of the loan. That said, we think the establishment of this facility was an important gesture that will be much appreciated if funding conditions tighten once again.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV