Has Our Debt been sold on at a loss?

[chippy]

Has Our Debt been sold on at a loss?

Our debt has been sold on at a loss to someone else? Im not sure if i heard this right?

 

[Protocol]

Well as bond yields rise, bond prices fall.


So, yes, clearly our bonds trade below par.

The original buyers are sitting on a paper loss, unless they hold until redemption.

Some have sold on.

So the new buyers have bought below par, maybe at 80.

 

[Protocol]

There is a suggestion that the Irish Govt buy back our debt at these lower prices.

 

[Brendan Burgess]

There is a suggestion that the Irish Govt buy back our debt at these lower prices.

Good idea. We borrow from the EU at 6% to buy back at 9%.

Or maybe Eamon Gilmore will simply tell the international markets that 9% is not the right rate and they should change the yield to 3%

Brendan

 

[mmclo]

Not EG has "told them" anything Brendan. He is asking the people in a democratic election to support a course of action, one which has considerable support amongst a lot of economists and commentators or do we no longer live in a democracy?