Time to Buy Irish Bonds: Economist
Investors should buy Irish sovereign debt as an expected European Union bailout will boost prices, Bob McKee, chief economist at Independent Strategy, told CNBC Thursday.
The Irish "government said it's going to guarantee the banks' liabilities right through to the end of next year" and with European Union money expected to be in place "and the backing of the European leaders and the IMF ..and possibly the UK coming with extra funds, I think they could create a situation where the market feels much more confident that Ireland's going to see this through," McKee said. "At least for the moment."
"I think the market will feel much more confident and we can expect Irish sovereign yields to come in," he added.
That will take Ireland out of the EU sovereign debt equation, but the fear may move to other areas, McKee said.
And "unless we get a bailout that is in the figure of 80 billion, maybe to 100 billion (euros), I think there'll be some disappointment," he said.