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Ireland breaks from Greece & Spain to lead european bond gains

  • 30-03-2010 8:49am
    #1
    murphaph
    Registered Users, Registered Users 2 Posts: 19,050 ✭✭✭✭


    http://www.businessweek.com/news/2010-03-29/ireland-breaks-from-greece-spain-to-lead-european-bond-gains.html
    March 30 (Bloomberg) -- Ireland’s bonds are poised to outperform those of every other euro member except Austria this quarter as investors bet it will be more successful than countries such as Greece in cutting its budget deficit.

    Hmmmm, wonder what the markets will make of the deal between the govt and unions today? NAMA is not ideal IMO but if the spread on bonds can be reduced to 60bp above Bunds then surely the reduced cost of borrowing money will be significant? Could it be so significant that it compensates for the cost of NAMA and the bank recapitalisations? Any thoughts.


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  • #2
    Dannyboy83
    Registered Users, Registered Users 2 Posts: 4,236 ✭✭✭Dannyboy83


    http://www.independent.ie/business/irish/irish-property-funding-gap-is-the-biggest-in-europe-2116788.html

    IRISH property owners will face the biggest gap in Europe between the money available and the money needed to refinance their commercial property borrowing over the next two years, according to a new report by London-based DTZ Holdings.
    Lenders everywhere in Europe are making far fewer loans than the market wants, pending more shake-outs in their mortgage books, even as calm returns to commercial real estate pricing across the Continent.
    The gap between how much money is available to refinance borrowing and the actual amount of borrowing is "disturbingly high" in Ireland, DTZ added.
    In terms of relative exposures to property invested, the report estimates Ireland has Europe's largest debt funding gap, at 10pc, compared with 7pc and 8pc in the UK and Spain respectively.
    In contrast, Germany and France have more modest relative debt funding gaps at 2pc and 3pc. The UK and Spain make up more than half of the borrowing requirement.





    In countries with high relative funding gaps, such as Ireland, the UK and Spain, DTZ expects large-scale structural solutions. The group also expects investors from countries such as Germany to flock to countries such as Ireland "overtime" to snap up bargains.


    Government bonds seem healthy, but I wonder, how healthy can they be when every pillar/underlying factor in the economy seems to be competing for the title of Worst in Europe?


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