According to the WSJ, bonds issued by European companies totaled $179.5 billion in the first quarter, up 38% from the same period last year.
European companies have traditionally used more bank lending than North America but cheap LTRO money is finding its ways into corporate bonds (rather than sovereigns). If the move continues it would erode traditional banking profits and make investment banking in Europe more lucrative — exactly the kind of unintended consequence you would expect from a program like the LTROs.
