Tags: Ireland | banks | default

Irish Bank Debt Risk Rises to Records

Wednesday, 24 Nov 2010 09:13 AM


Credit-default swaps on financial companies in Ireland rose to record levels, according to CMA.

Swaps on senior debt of Bank of Ireland climbed to 11.5 percent upfront and five percent a year, signalling a 50.5 percent probability of default within five years. Swaps on the bank’s subordinated debt increased to 44.8 percent upfront, a 76 percent chance of default.

Contracts on the junior debt of Allied Irish Banks PLC jumped to 68.5 percent upfront, signalling a 97 percent probability of default.

Subordinated swaps on Irish Life & Permanent PLC now cost 52.2 percent upfront, showing an 83 percent chance of default.

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