SOVEREIGN DEBT: EBA STRESS TESTS. EUROPE: HIGH EXPOSURE FOR UNICREDIT (€59B), ISP (€52B), SANTANDER (€52), BNP (€48), BBVA (€22B). LATAM: HIGH EXPOSURE FOR SANTANDER (€14B), BBVA (€8B). WE DO NOT KNOW ANYTHING YET ABOUT THE WAY ECB
WILL STRESS SOVEREIGN DEBTS (ie level or hierarchy of discounts ...): The EBA has just updated figures that served as the basis for past stress tests. These figures reveal pronounced differences in sovereign debt holdings. Unicredit is the biggest holder of European sovereign debt, followed by ISP, Santander and BNP Paribas. BBVA appears to have far less exposure. Santander and BBVA also have large holdings of Latin American sovereign debt. Given that sovereign debt will be stress tested (how?), these figures are a reminder of the sensitivity of Italian banks to their sovereign debt.