Thursday 27 December 2012

THE DIRTY DOZEN w/e Dec 30th 2012

Final week of 2012 and boy, was it a good year to be bondholder in an Irish bank. The last of the €20+ billion will be paid out this Friday, Dec 28th, a bond of nearly €40 million, unsecured, from Bank of Ireland - more very happy failed punters cashing in at our expense. I wonder, whatever happened to that much trumpeted separation of bank and sovereign debt agreed to last June?

Anyway, Happy New Year to you all, though that much is already guaranteed for those whose bonds 'mature' in 2013, €17bn in total in 2013. Add that to the €9bn in government bonds that fall due in 2013, throw in the projected budget deficit of €14.5bn and lads - we'd better get down to work. That's a hell of a lot of additional debt on top of the debt we already have, don't ye think?

Looking through the next 12 bonds, shown in the table below, I hope the good people in Irish Life & Permanent have been putting a few bob aside over the Christmas, two big bonds coming up on Jan 14th, each for $1.75bn. That's right, a total of $3.5bn due in one day, from a bank we now own outright. What's the budget 'adjustment' for 2013 again???

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