These securities have already seen their secondary market yields rise substantially since the beginning of this year, in line with money market yields. Furthermore, bond funding is set to increase in compliance with MREL requirements and to replace, at least in part, TLTRO III refinancing operations. 23. However, the effect of this on net interest income is expected to be positive overall.
Unfortunately, authorities then were ill-positioned to coordinate an effective international response, as years of bitter wrangling over World War I international debts and reparations had all but destroyed the mutual trust upon which coordination depends. In the recent episode, policymakers, bankers, and business people recognized that the world’s economies and financial systems would sink or swim together.