This has not prevented some as BNP Paribas for EUR 1

Toxic assets LBO is not. Big Anglo-Saxon, banks such as Goldman Sachs, décotent their portfolio of leveraged funding 50 of their value. French banks are trying, they twist the neck to the concern that generate these records that they have poorly provisioned. "It is a portfolio of quality that only inspires us no particular concern, explained Baudouin Prot presentation results of BNP Paribas, the most committed establishment." Thus, we are in principle opposed to sharing of portfolios with other banks (the creation of structure of hiving project, Editor's note).

In total, the five major French banks (excluding credit mutual-CIC) were provisioned less than 2 billion euros on a total exposure of nearly $ 28 billion and each brings on the fingers of one hand the number of French records in restructuring. One estimated that 14 the number of records in difficulty, including three French on seven LBO strategic, while another assessed six on 15 who broke their bank covenants.

12 defects on 288 LBO

"Are the risks for the moment less autonomous because there are few cases where the final risk is high," justified yet MEPs may 6 for the account of the place Christian Noyer, Governor of the Bank of France.

This has not prevented some, as BNP Paribas for EUR 1.7 billion, to transfer their LBO of their "trading book" claims, their portfolio of syndication in progress, to their "banking book", their conventional loans portfolio, thus avoiding display impairment losses.

"The haircuts on the LBO in the"trading books"recorded at market value can reach amounts of the order of 20 to 30, figures much higher rates of provisions on LBO portfolio accounted for in"banking book", says Bernard de Longevialle in Standard & Poor's. By these transfers, they are a trade-off between the display of gains in "trading book" and requirements in additional own funds on their credit portfolio. These operations can be justified if we consider that the discounts related to accounting in market value are not always relevant.

For the time being, Fitch noted that 12 defects on 288 LBO. Failures that could be contained through the covenants enough cowards granted on LBO of 2006 and 2007, and the manner in which banks renegotiate debt. When these covenants were broken, they agreed moratoriums for injections of capital on the part of the sponsors, "removing the appearance of defects in 2008", said the Agency. And avoiding at the same time having to cover these debts or view losses if they had themselves take the key.

A stay that will not necessarily last. In the 12 to 18 months, default rates could rise by 10 to 15, and within three years, they will have to face a wall of debt. Between 2012 and 2016, 200 billion euros of debt with approximately 75 billion euros of debt today noted B to repay. Today, 54 of the 250 billion LBO rated by Fitch is noted B, with a low margin turning and none of the senior debt portfolio can be reimbursed on the basis of the cash flow, believes the Agency.