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2011-07-25 Europe

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Posted by Bobby 2011-07-25 06:36|| || Front Page|| [2 views ] Top

#1 The bonds are trading well below par. That's basically default.

Posted by Bright Pebbles 2011-07-25 07:03|| 2011-07-25 07:03|| Front Page Top

#2 "Almost Certain" -- It has ALREADY HAPPENED. And some time ago, at that. Moody's is a day late & a few billion euros short.

Posted by Anguper Hupomosing9418 2011-07-25 09:46|| 2011-07-25 09:46|| Front Page Top

#3 Speaking of defaults, here's an article from last Friday, which has gotten no coverage: The International Swaps and Derivatives Association (ISDA) said a restructuring credit event occurred after Bank of Ireland closed an offer to buy back about 2.6 billion euros of Tier 1 and Tier 2 subordinated debt at a discount of up to 90 percent earlier this month.

A credit event is financial industry jargon for default on payment, breach of bond covenants or other event that casts doubt on an issuer's ability to service its debt.

Posted by Anguper Hupomosing9418 2011-07-25 09:50|| 2011-07-25 09:50|| Front Page Top

#4 Default occurs when the issuer fails to pay the coupon (agreed interest at set date).

The price the bond trades at is immaterial.

Bank of Ireland closed an offer to buy back about 2.6 billion euros of Tier 1 and Tier 2 subordinated debt at a discount of up to 90 percent earlier this month.

Interesting. I wonder what persuaded the bondholders to sell. 90% is a big haircut.

Posted by phil_b 2011-07-25 19:58|| 2011-07-25 19:58|| Front Page Top

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