Tags: Cost | Insuring | Irish | Debt | New | High

Cost of Insuring Irish Debt Hits a New High

Tuesday, 02 Nov 2010 09:56 AM

The cost of insuring against a sovereign debt default by Ireland hit a record high on Tuesday with peripherals under pressure again and with Allied Irish Banks struggling to sell its U.K. units.

Five-year Irish CDS prices were 27 bps higher at a new peak of 525 bps, according to Markit, while the country's 10-year government bond yield spread over German Bunds was at a euro lifetime wide of 487 bps.

Allied Irish Banks said on Tuesday that the sale of its British businesses remained under review after difficult market conditions had made progress challenging.

"The bank failed to find bidders for its UK business, meaning that the government's preference shares could be converted into ordinary shares. Along with a proposed rights issue, this could take the government's share to 92 percent if asset sales aren't achieved," said Markit's Gavan Nolan.

Euro zone peripherals continued the widening begun after proposals to take the euro zone a step closer to a permanent mechanism for resolving debt crises provided a reminder of the possibility of a government restructuring, with Greece and Ireland the notable underperformers.

© 2017 Thomson/Reuters. All rights reserved.

 
1Like our page
2Share
Markets
The cost of insuring against a sovereign debt default by Ireland hit a record high on Tuesday with peripherals under pressure again and with Allied Irish Banks struggling to sell its U.K. units. Five-year Irish CDS prices were 27 bps higher at a new peak of 525 bps,...
Cost,Insuring,Irish,Debt,New,High
183
2010-56-02
Tuesday, 02 Nov 2010 09:56 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved