• Due to a glitch in the old vBulletin software, some users were "banned" when they tried to change their passwords at the end of February. This does not apply after the site was converted to Xenforo. If you were affected by this, please us viua the Contact us link in the footer.

Ireland Credit-Default Swaps Surge to Record as investers FLEE!


Joined
Sep 10, 2008
Messages
3,584
The cost to insure Ireland’s debt climbed to a record, leading a surge in European sovereign credit-default swaps, on concern Anglo Irish Bank Corp. won’t pay back bondholders in full.

Contracts on Ireland jumped 23 basis points to 487 basis points at 12:50 p.m. in London, according to data provider CMA. Swaps on subordinated debt of Anglo Irish, which was nationalized last year, now cost 5 million euros ($6.7 million) in advance and 500,000 euros annually to insure 10 million euros of debt for five years.

Investors are fleeing Irish bonds on concern bank bailout costs and a shrinking economy will hurt efforts to tame the European Union’s biggest budget deficit. Government guarantees covering some of the subordinated debt sold by the nation’s banks come to an end next week, while Irish Central Bank Governor Patrick Honohan said in June he didn’t know if junior bondholders in Anglo Irish will be “made whole.”

Ireland Credit Risk Jumps to Record on Anglo Bondholder Concern - Bloomberg


I can hear the bank playing as the ship goes down.

We have turned a corner!
 

New Threads

Popular Threads

Most Replies

Top