among the most important in Europe or even the world

Is there a risk for the placement of French borrowings in the market

In times of crisis, there is generally an attitude of domestic downturn. However French issuers have an important asset: to have domestic institutional investors (banks, insurance companies, etc.) among the most important in Europe, or even the world. They are also among the main purchasers of debt securities issued by the States of the euro area and in the purchase of the borrowings of French public bodies and agencies. Debt issued by the France is purchased about two thirds by foreigners, reflecting their confidence. This means that in the most tense period, the State may benefit from a cushion of safety: the share of domestic buyers can be increased. It's an advantage for the placement of the French debt. However, the France is no exception to the requirements of the markets, in particular on the question of its indebtedness, held high. Markets also tend to doubt his ability to carry out reforms. The recent announcements on pensions therefore send an encouraging signal. I also think that if nothing was done in this area, as our neighbours, it would be a negative factor of differentiation from other borrowers rated AAA.

How do you see the situation of "peripheral" in the euro area States

Since a few months, Portuguese debt and, to a lesser extent, Spanish emissions are under supervision of the market. It has also accelerated the implementation of the European financial stability mechanism. The Portugal is in a weaker position because he cannot rely on important domestic sources of financing. But for the moment, the country conducted its program of debt as planned. Also troubled, the Spain seems to find a more stable situation, while Moody's has placed its AAA note under surveillance negative end of June. This warning did not prevent the award of 1 July 5-year bonds to be over-subscribed and exit at a lower cost than the titles of same maturity in circulation. This good result also led the Spain to start following a syndicated loan of EUR 6 billion. Another positive point, a negotiable loan said "schuldschein darlehen" under the German jurisdiction has just performed for the first time, reflecting renewed appetite on the part of German investors. As the Greece, it enjoys now support the IMF and Europe. If it is no longer appeal to the market to raise medium and long-term debt, it will place today, according to schedule, the 6-month Treasury bills. These short term papers are traditionally purchased by domestic banks.

Why is that syndications retreating to auctions since the beginning of the year

It requires an understanding the characteristics of these two types of transactions. A syndicated loan implies that it opens a book orders, which allows the market better knowledge there is final buyers. The operation is more transparent than an award, where only the partner banks of sovereign States (specialists in value of the Treasury, SVT in France) participate in the auction. If ever a syndication is very difficult - that is, investors do not lend or require a very high cost-, it knows. This was what happened to the Greece at the beginning of the year. In an award, it is not uncommon that the SVT just propose an amount and a price in the auction, while they have not yet received the corresponding orders on the part of the final investors. They will place the debt after the fact. It is for these reasons that in times of tension on sovereign debt, the use of auctions is preferred. The SVT, in their role as partners in the States, are encouraged to contribute to the success of the auction. The pupils are not only well noted but they are also selected to participate in possible syndications, more lucrative.