Friday, February 25, 2011

Irish Elections Begin Polls Close At 10PM Local Time

Today is a big day in the world of assigning risk. Senior bondholders have been protected for years but today may be the start of a shift in forcing those to profit, to also assume risk. Fine Gael is expected to win today and from their quote below, senior bondholders should be concerned. I don't suspect the results to be "news worthy" for some time, at least not in this "market."  Irish banks are bleeding both from falling asset prices and dwindling deposits.  They've resorted to the last straw of issuing bonds to themselves and using those as collateral.

Irish Independant

Opinion polls have put Fine Gael well in the lead to head the next government, securing as much as 40pc of the popular vote - potentially allowing for a single-party government propped up by independents.


Fine Gael leader Kenny, 59, said this week his priority will be to renegotiate the 5.8 percent interest rate on the bailout. The party has said it may seek European agreement to share the burden of rescuing the country’s financial system with senior bank bondholders.


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