Irish Banks’ Senior Bonds Rally as Investors Spared Sharing Loss
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Irish banks’ senior bonds rose after the nation’s 85 billion-euro ($113 billion) bailout spared holders of the debt from having to share in lenders’ losses.
Bank of Ireland Plc’s 1.47 billion euros of senior floating-rate notes due September 2011 rose 8.25 cents on the euro to 91.6 cents as of 4:22 p.m. in London, a 10 percent increase, according to composite prices compiled by Bloomberg. The securities fell 7 percent on Nov. 26 on concern senior noteholders were being lined up to take some of the burden of the imminent Irish rescue.