Tainted Alpha

Irish spreads again a bit higher today. Irish government will announce tomorrow the details of Anglo Irish burial rescue. So far the bank has received EUR 23 billion of state help, tomorrow will be added additional EUR 10-15 billion.

Incidental tomorrow marks two years of Irish government guaranteeing Anglo Irish debt and the guarantee is not (jet) extended. So, there is a possibility that some EUR 5.7 billion of Anglo Irish debt will start trading without the state guarantee.

Portugal spreads also moved higher.

Chart 1. Ireland vs. Germany 10 Year Government Bond Yield Spread

Source: Bloomberg

Chart 2. Portugal vs. Germany 10 Year Government Bond Yield Spread

Source: Bloomberg

Ireland, Portugal

This entry was posted on Wednesday, September 29th, 2010 at 3:07 am and is filed under Markets. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.