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Wednesday, 29 April 2015

BAD #IRISH SIGNALS - Nutty Bonds Selling Like Crazy

Even Ireland’s weakest bank can raise money in bond market

The first Irish lender to sell Europe’s riskiest type of bank bond is also the nation’s weakest.
Permanent TSB, which failed European financial stress tests last year, is selling €125 million of so-called additional Tier 1, or AT1, bonds this week.

The undated securities convert into shares should capital drop below a certain threshold and carry coupons that issuers can just decide not to pay.
The sale will nonetheless “will go down extraordinary well,” said Liam Dunne, a fixed-income trader at Merrion Capital in Dublin. “The world has changed. There is huge demand for Irish assets at the moment.” Read More.

Do You Think This Guy Knows Something?


Any time Big Bankers come up with quasi debt/equity gimmicks you know one thing is certain-- there are HUGE underlying problems that they are looking to disguise. That means this is a key signal there  is turmoil ahead -  being on the short side of these securities makes much more sense.

All in all , we would  stay away from these marginal Banks anywhere in the World, but particularly the PIGS' afilliatates.

 There is a BIG Bubble out there that could spell utter disaster for these laggards.

International Offices
April 29,2015 

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