AIB: did they jump or were they pushed?

The wisdom of AIB Mortgage Bank’s decision to try to issue a three year covered bond via Barclays Capital, BNP Paribas and Deutsche Bank this week was being questioned today after the bank’s decision to pull its issue yesterday (Tuesday). While market participants understood the decision to suspend its issue in light of the deterioration in market conditions, they asked why AIB tried to come to such an oversupplied and fragile market with a deal that has now only further undermined sentiment.