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capito capito tutto mi torna...inoltre riaprono un loro bond in sterline
EOFFER<Z8K6> JUL.31 450 BANK OF IRELAND 9.25 PCT SEPT.2020 AT 99.846..
questa penso che già la conoscete ma la allego non si sa mai
March 24 (Bloomberg) -- Ireland sold 1 billion euros ($1.36 billion) of bonds at its first auction in four years to raise cash as the economic slump saps tax revenue.
Irish 10-year bonds rose after the auction, reducing the difference in yield, or spread, between the securities and German benchmark notes to the narrowest in three weeks. The cost of insuring against a government default declined, credit- default swap prices showed.
“Ireland chose a fantastic time to put their toes back in the water,” said Peter Chatwell, a fixed-income strategist in London at Calyon, the investment-banking unit of Credit Agricole SA. “Risk appetite has improved and the spread is pulling in, suggesting the auction inspired a lot of confidence.”
Ireland is auctioning bonds for the first time since 2005 as the government seeks to plug a swelling budget deficit amid the country’s first recession in a quarter century. Prime Minister Brian Cowen will present an emergency budget on April 7 designed to control the shortfall and head off a credit downgrade that would drive up borrowing costs.
The government issued 300 million euros of 4 percent notes maturing in 2011 yielding an average 3.459 percent, the National Treasury Management Agency said today in a statement from Dublin. That’s about 204 basis points more than the yield on German notes of similar maturity. Investors bid for 3.8 times the amount of debt offered.
2020 Bonds
Ireland also sold 700 million euros of 4.5 percent securities due 2020 to yield 5.808 percent, up from 3.51 percent at the last auction of the debt on Oct. 20, 2005. Demand for the bonds was 2.7 times the securities available, compared with 2.3 times in 2005.
Ireland’s budget deficit widened to 2.1 billion euros in the first two months of the year, the largest for the period since at least 1981, the Finance Ministry said on March 3.
Standard & Poor’s and Moody’s Investors Service cut their outlooks on Ireland’s credit rating this year, signaling they may downgrade the AAA debt, as concern deepened the country may have difficulty servicing its obligations amid the increasing cost of propping up an ailing banking industry. Ireland’s debt lost investors 6.5 percent this year, compared with a 0.2 percent gain for German bunds, according to Merrill Lynch & Co.’s Irish Governments and German Federal Governments indexes.
The difference in yield, or spread, between Irish and German 10-year government bonds widened to 284 basis points on March 19, the most in 10 years. It narrowed 23 basis points today to 249 basis points, the least since March 3. The spread was 38 basis points a year ago and the average over the past 10 years is 18 basis points.
‘Auction Again’
“The result looks good,” said Wilson Chin, a European bond strategist at ING Groep NV in Amsterdam. “The spread against Germany is narrower today, and it should encourage them to go to auction again.”
Ireland last year became the first European nation to guarantee the deposits and borrowings of its largest banks as the end of a decade-long property boom soured loans. It also nationalized Anglo Irish Bank Corp. and vowed to pump 7 billion euros into Bank of Ireland Plc and Allied Irish Banks Plc.
Credit-default swaps on Irish government debt fell 4.25 basis points to 227.75 today, according to prices from CMA Datavision. They reached a record 396 basis points on Feb. 17.
The bets against Ireland this year have been “misconceived” because the euro region “isn’t going to break up,” Finance Minister Brian Lenihan said in a Bloomberg Television interview March 17.
Syndicated Sales
Credit-default swaps provide protection against default, and traders use them to speculate on changes in creditworthiness. A decline signals an improvement in the perception of credit quality. The contracts pay the buyer face value in exchange for the underlying securities if a borrower fails to adhere to its debt agreements. A basis point is worth $1,000 on a swap that protects $10 million of debt.
Ireland’s NTMA raised 10 billion euros in two bond sales via syndication, in January and February. In syndicated transactions, governments use banks to find buyers for the securities rather than offer the debt via auction.
To contact the reporter on this story: Fergal O’Brien in Dublin at [email protected]
Last Updated: March 24, 2009 09:58 EDT
EOFFER<Z8K6> JUL.31 450 BANK OF IRELAND 9.25 PCT SEPT.2020 AT 99.846..
questa penso che già la conoscete ma la allego non si sa mai
March 24 (Bloomberg) -- Ireland sold 1 billion euros ($1.36 billion) of bonds at its first auction in four years to raise cash as the economic slump saps tax revenue.
Irish 10-year bonds rose after the auction, reducing the difference in yield, or spread, between the securities and German benchmark notes to the narrowest in three weeks. The cost of insuring against a government default declined, credit- default swap prices showed.
“Ireland chose a fantastic time to put their toes back in the water,” said Peter Chatwell, a fixed-income strategist in London at Calyon, the investment-banking unit of Credit Agricole SA. “Risk appetite has improved and the spread is pulling in, suggesting the auction inspired a lot of confidence.”
Ireland is auctioning bonds for the first time since 2005 as the government seeks to plug a swelling budget deficit amid the country’s first recession in a quarter century. Prime Minister Brian Cowen will present an emergency budget on April 7 designed to control the shortfall and head off a credit downgrade that would drive up borrowing costs.
The government issued 300 million euros of 4 percent notes maturing in 2011 yielding an average 3.459 percent, the National Treasury Management Agency said today in a statement from Dublin. That’s about 204 basis points more than the yield on German notes of similar maturity. Investors bid for 3.8 times the amount of debt offered.
2020 Bonds
Ireland also sold 700 million euros of 4.5 percent securities due 2020 to yield 5.808 percent, up from 3.51 percent at the last auction of the debt on Oct. 20, 2005. Demand for the bonds was 2.7 times the securities available, compared with 2.3 times in 2005.
Ireland’s budget deficit widened to 2.1 billion euros in the first two months of the year, the largest for the period since at least 1981, the Finance Ministry said on March 3.
Standard & Poor’s and Moody’s Investors Service cut their outlooks on Ireland’s credit rating this year, signaling they may downgrade the AAA debt, as concern deepened the country may have difficulty servicing its obligations amid the increasing cost of propping up an ailing banking industry. Ireland’s debt lost investors 6.5 percent this year, compared with a 0.2 percent gain for German bunds, according to Merrill Lynch & Co.’s Irish Governments and German Federal Governments indexes.
The difference in yield, or spread, between Irish and German 10-year government bonds widened to 284 basis points on March 19, the most in 10 years. It narrowed 23 basis points today to 249 basis points, the least since March 3. The spread was 38 basis points a year ago and the average over the past 10 years is 18 basis points.
‘Auction Again’
“The result looks good,” said Wilson Chin, a European bond strategist at ING Groep NV in Amsterdam. “The spread against Germany is narrower today, and it should encourage them to go to auction again.”
Ireland last year became the first European nation to guarantee the deposits and borrowings of its largest banks as the end of a decade-long property boom soured loans. It also nationalized Anglo Irish Bank Corp. and vowed to pump 7 billion euros into Bank of Ireland Plc and Allied Irish Banks Plc.
Credit-default swaps on Irish government debt fell 4.25 basis points to 227.75 today, according to prices from CMA Datavision. They reached a record 396 basis points on Feb. 17.
The bets against Ireland this year have been “misconceived” because the euro region “isn’t going to break up,” Finance Minister Brian Lenihan said in a Bloomberg Television interview March 17.
Syndicated Sales
Credit-default swaps provide protection against default, and traders use them to speculate on changes in creditworthiness. A decline signals an improvement in the perception of credit quality. The contracts pay the buyer face value in exchange for the underlying securities if a borrower fails to adhere to its debt agreements. A basis point is worth $1,000 on a swap that protects $10 million of debt.
Ireland’s NTMA raised 10 billion euros in two bond sales via syndication, in January and February. In syndicated transactions, governments use banks to find buyers for the securities rather than offer the debt via auction.
To contact the reporter on this story: Fergal O’Brien in Dublin at [email protected]
Last Updated: March 24, 2009 09:58 EDT
