Anglo Irish Bank : Subordinated Debt

Anyone know what is going on here?

The CDS spread for sub debt is plunging in the secondary market, meaning the price of the bonds are soaring.

Have they announced a very generous buy back, or have there been any indications that there will be no more buy backs.

Anglo Irish Bank Corporation Limited (SUB)

Best performing CDS in the market today
CMA | Market Data

Why do I smell a rat and get a feeling that certain “insiders” are cleaning up as we speak XX

Well they did buy back a big chunk of Tier 1 and 2 at way below par and this somehow “added” 1.8B to their balance sheet. A CDS price of 1400 - 1800 would imply a price way way below par. So maybe another buy back on the way at a price way above that implied by 1400. If it has dropped below 1000 then it must be a very sweet price.

I think we may have another insider cash out event in the offing.

something very rotten here

I read it that after Lenny said that subordinated debt would not be guaranteed past september, Anglo is hoovering up it’s own bonds with taxpayers money. Could that be the case?

The price of the Anglo sub bonds must be up over 20% today.

Still haven’t seen anything on the Anglo website about a sub-debt buy back.

For a move of this size Anglo must either have announced it is buying back the bonds back on very generous terms, or it has let it be known that these bonds will be paid in full until maturity.

Or it could be that someone has got information that something is going to happen and they are cashing in on that knowledge.

Whatever it is, it isn’t good for the taxpayer.

I dont see what the big mystery is. The government announced its going to support Anglo with €19bn, so obviously their bonds will rise in value and their CDS fall.

Except these are the subordianted bonds. They should be there to absord losses therefore the investors should get nothing back.

From yesterdays price movements it looks like Anglo/state is being very generous to those remaining.

Never bet against the Irish govt shafting it’s citizens is what I think they’re trying to say.