With everyone watching debt rollovers in Europe, let's instead take a look at the total global debt rollover and debt issuance problem.
Bloomberg reports World’s Biggest Economies Face $7.6T Debt
2012 Debt Rollovers and Interest PaymentsGovernments of the world’s leading economies have more than $7.6 trillion of debt maturing this year, with most facing a rise in borrowing costs.
Led by Japan’s $3 trillion and the U.S.’s $2.8 trillion, the amount coming due for the Group of Seven nations and Brazil, Russia, India and China is up from $7.4 trillion at this time last year, according to data compiled by Bloomberg.
The amount needing to be refinanced rises to more than $8 trillion when interest payments are included. Coming after a year in which Standard & Poor’s cut the U.S.’s rating to AA+ from AAA and put 15 European nations on notice for possible downgrades, the competition to find buyers is heating up.
|Country||2012 Bond, Bill Redemptions ($)||Coupon Payments|
|Japan||3000 billion||117 billion|
|U.S.||2783 billion||212 billion|
|Italy||428 billion||72 billion|
|France||367 billion||54 billion|
|Germany||285 billion||45 billion|
|Canada||221 billion||14 billion|
|Brazil||169 billion||31 billion|
|U.K.||165 billion||67 billion|
|China||121 billion||41 billion|
|India||57 billion||39 billion|
|Russia||13 billion||9 billion|
Also consider Italy banks almost halfway to 2012 funding needsMADRID, Dec 22 (Reuters) - Spanish banks will use the majority of the cheap long-term cash from the European Central Bank to cover steep 2012 debt maturities, market and banking sources said on Thursday.
Spain's banks face a massive spike in their funding needs next year with around 130 billion euros ($170 billion) of debt coming to maturity. Many banks took on 3-year, government-guaranteed debt in 2008, making up a large part of borrowing.
"The banks that have taken part in the auction have primarily done so to finance the hefty maturities that fall next year, mostly in the first half," said one savings bank source.
Dollar Swaps SoarMILAN, Dec 22 (Reuters) - Italy's banks are almost halfway towards meeting their funding needs for 2012 after they tapped 116 billion euros of cheap long-term cash from the European Central Bank on Wednesday.
The ECB's first ever offer of three-year loans on Wednesday drew heavy demand of 489 billion euros from 523 banks, raising hopes a credit crunch can be avoided and that the money could be used to buy Italian and Spanish bonds.
The ECB will follow up with another similar operation in February in a move designed to directly help banks which need to raise capital.
A study by local broker Intermonte said 42-44 percent of total Italian bank funding and 75-80 percent of wholesale funding for next year had been raised on Wednesday.
The euro zone banks also have about 920 billion euros of liquidity existing with the ECB which indicates Italian banks could have some 230 billion.
On top of this are funds the banks can raise through the wide range of cash operations offered by the ECB.