Sovereign woes carry hefty price for firms

[BoyRacer]

Sovereign woes carry hefty price for firms - Eamon Quinn -> independent.ie/national-news … 19319.html

Irish companies will inevitably be the hidden victims of the sovereign bond blowout as their costs of borrowing will rise, economists have warned.
The cost of borrowing for companies struggling in the recession is directly linked to soaring sovereign interest rates and the crisis facing the sovereign is tightening the squeeze on private companies even more.
The costs of insuring bonds issued by many banks and Eircom against default soared last week on world credit markets, according to CMA Datavision and Bloomberg market figures.

there is more

[Open_Window]

Credit lines form foreign companies too.

[joeadvisory]

hi all

anyone have an update on the eircom 2016 bonds - have been travelling for a month and see they still hovering around the 50cent mark.

is the company going into prepack?

are they going to buy bonds back and haircut the holders?

thnx