Will Senior Bondholder of Irish Banks Take a Haircut?


Will Senior Bondholder of Irish Banks Take a Haircut? (Bloomberg) "European Union and International Monetary Fund officials are taking legal advice on how senior bondholders can share the cost of Ireland’s 85 billion-euro ($113 billion) bailout without triggering lawsuits, the Irish Times reported today, without saying where it got the information. Negotiators plan to finalize the aid package on Nov. 28 before markets re-open after the weekend, an EU official said on condition of anonymity." Junior bond holders have expected to come out less than whole—but analysts in Dublin long believed that senior bondholders were 'sacrosanct'. Perhaps not so, as the situation continues to deteriorate.

"China Protests U.S.-South Korea Exercises" (Wall Street Journal) Add this to the list of thorny issues between The U.S. and China:
"China made its first official protest over plans by the U.S. and South Korea to hold joint military exercises involving the aircraft carrier USS George Washington in the Yellow Sea on Sunday." The Journal article suggests the that the protests were "noticeably more restrained than when the U.S. announced similar plans," and that "The statement also appeared to offer all sides a face-saving compromise," —but still, skepticism perhaps should remain the order of the day. Have we so soon forgotten Chairman Bernanke's remarks on currency issues made just a week ago today?

"Stocks Sink as Worries over Europe's Debt Linger" (Yahoo Finance via AP)
"Stocks are sinking during a shortened session on Wall Street amid lingering uncertainty surrounding Europe's debt troubles and a warning from North Korea.European stock markets and the euro fell Friday as worries mount that Portugal will need cash from other European Union countries to help manage its debts. The Dow Jones industrial average fell 100, or 0.9 percent, to 11,086. The S&P 500 index was down 8, or 0.7 percent, to 1,190. The Nasdaq composite index fell 10, or 0.4 percent, to 2,533." The trading session will close at 1:00 p.m. today.