Black week for FIG as looming Irish, Danish haircuts rock banks

11 Feb 2011

A bleaker future for the bank finance market appeared more likely this week as the prospect of haircuts for Irish bondholders increased and a Danish lender was taken into administration.

Under Denmark’s resolution regime Amagerbanken’s bankruptcy is likely to precipitate a 41% loss on senior debt, while what many analysts see as the first step towards enforcing losses on two Irish banks’ creditors came with a High Court order to auction off deposits and assets.

The two events shine ...

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