Anglo Irish Haircut Begins

The troubled Anglo Irish bank, which was the “early bird” of the current big debt crisis in Ireland is restructuring its debt. This means that some bond holders just won’t get the money back. More details here on Alphaville. Tracy Alloway notes:

To be sure, this was largely expected* by the market, given recent bondholder votes, in which investors of Anglo Irish sub-debt due in 2017 agreed to a discounted exchange, or burden sharing. Next up are the 2014 and 2016 holders in December.

Indeed, mo impact on EUR/USD is seen. The focus is already on the state aid.

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