Ireland

Are Dublin and Lisbon ready for Greek bondage?

29 Nov 2012

Ireland and Portugal wouldn’t mind benefiting from the type of debt relief that Greece just received. But if Athens got sweet terms, it surrendered part of its fiscal sovereignty in return. Other countries are only half-serious when they call for equal treatment.

Can Barclays old boys make the Irish play pay?

24 Oct 2012

Barclays alumni made millions helping their ex-employer offload subprime assets in 2009. Now they have taken a 17 pct stake in Ireland’s 74 bln euro bad bank. The terms aren’t public. But the arrangement seems to need leverage, or a discount, or both if history is to be repeated with this new punt.

Ireland gives euro zone a hint of crisis freedom

26 Jul 2012

Dublin is issuing long-term debt for the first time since the rescue of 2010. The funding is likely to be pricey. But if the deal gets sold, it will show that bailouts needn’t be forever, or end in default. With Spain and Italy on the brink, euro zone partners will be thankful.

Ireland may just be able to return to bond market

4 Jul 2012

Last week’s euro summit dangled a big carrot: that Dublin’s punishing bank bailout which brought the country to its knees may be rejigged. Irish bond yields are now as low as Spain’s. But much detail needs to be agreed, leaving scope for disappointment.

Ireland gets slim pickings from ECB deal

30 Mar 2012

Dublin is trumpeting the fact that it has been allowed to make a 3.06 bln euro injection into its banks with a long-term bond rather than cash. But the elaborate arrangement actually delays the problem by just a year - and the wider issue is, as yet, no nearer to being solved.

How to solve Dublin’s IOU problem

26 Mar 2012

Ireland is trying to restructure the fearfully complex promissory notes it issued to bail out its banks. Ideally, it would like to hang onto 31 billion euros of cheap Eurosystem money for 30 years. While that’s too much to expect, there should be scope for compromise.

Eircom’s top lenders will soon call the shots

20 Feb 2012

The debt-laden Irish telco’s last owner walked away, and an auction’s unlikely to find a new one. A $2 bln debt bonfire beckons, which would leave top-ranking lenders in control. Depressed valuations across the sector suggest junior creditors will struggle to salvage anything.

Italy’s revival brings little joy to fund managers

7 Feb 2012

Many bond investors have missed the best trade of 2012 so far. Italian 10-year government debt gained 8 pct in January while many managers were wary. Rather than chase prices higher, those who missed the boat may find more value in other corners of the euro zone periphery.

Ireland’s bond swap shows how self help can work

26 Jan 2012

Greece is defaulting, Portugal may follow, but Ireland is raising funds. Dublin’s 3.5 bln euro bond swap eases fears of a liquidity crunch and will help the country return to markets during its IMF programme. It’s a step closer to normality for Ireland, and Europe.

Ireland needs euro help for its banks

25 Jan 2012

Ireland is meeting its fiscal targets, but a slowing economy means it may need more help. One possible solution would be for the euro bailout fund to take on some 31 billion euros of IOUs Dublin gave its banks. A hard sell, but Europe needs a bailout success story.

Austria’s problem is more Ireland than Italy

16 Jan 2012

S&P’s downgrade of the country’s AAA rating does not reflect problems in the economy. The current account is in surplus and deficit and debt levels moderate. But Austria’s banks peddled unsound foreign currency mortgages at home and abroad. The country is paying the price.

Hugo Dixon: Semantics could help euro

9 Jan 2012

There is a crying need to distinguish between fiscal austerity and structural reform. The endless austerity programmes adopted by the GIIPS could spiral out of control. By contrast, structural reform could make them dynamic.

Irish tiger-turned-tortoise may need more help

7 Dec 2011

Despite several years of austerity, the country has announced more cuts. Next year’s budget deficit is still forecast at a huge 8.6 percent of GDP. Ireland has adjusted rapidly and its industry is competitive. But it may still need more support from the euro zone and IMF.

Wall Street dealmakers get trampled by PIIGS

10 Oct 2011

The fear and uncertainty over Europe has sent the cost of U.S. credit skyward. By one closely watched gauge, junk bonds are yielding almost five percentage points more than they reasonably should. Given the bureaucratic dithering, bankers and buyout barons may be idle for a while.

Ireland gets good grades but hasn’t passed yet

20 Sep 2011

Dublin is crawling out of the PIIG sty. Irish bonds outshone those of Portugal and downgraded Italy during the summer turmoil. The country is ahead of target on its IMF programme. But it’s still vulnerable to weak global growth prospects and to dysfunctional euro zone governance.