Comments on: Avoiding confusion on the structural deficit http://www.irisheconomy.ie/index.php/2009/03/30/avoiding-confusion-on-the-structural-deficit/ Wed, 16 May 2012 22:56:32 +0000 http://wordpress.org/?v=2.6.3 By: John Gerard http://www.irisheconomy.ie/index.php/2009/03/30/avoiding-confusion-on-the-structural-deficit/#comment-3797 John Gerard Sat, 04 Apr 2009 23:36:41 +0000 http://www.irisheconomy.ie/?p=1330#comment-3797 The key problem with the S&P downgrade is that we remain on negative outlook - so now further downgrades will be priced in. This will especially cost us in issuing longer dated bonds. The market is better form these days so I would not be misslead by tighter CDS spreas (most countries have benefited from this trend recently) This will change soon, especially after Tuesday if this goverment is seen to be soft on seriously cutting expenditure (incl social welfare) and instead favouring taxation. Stay short on Eire. The key problem with the S&P downgrade is that we remain on negative outlook - so now further downgrades will be priced in. This will especially cost us in issuing longer dated bonds.

The market is better form these days so I would not be misslead by tighter CDS spreas (most countries have benefited from this trend recently) This will change soon, especially after Tuesday if this goverment is seen to be soft on seriously cutting expenditure (incl social welfare) and instead favouring taxation. Stay short on Eire.

]]> By: LorcanRK http://www.irisheconomy.ie/index.php/2009/03/30/avoiding-confusion-on-the-structural-deficit/#comment-3341 LorcanRK Mon, 30 Mar 2009 17:51:10 +0000 http://www.irisheconomy.ie/?p=1330#comment-3341 @Brian, isn't that almost fully priced in already? Hardly a surprising downgrade, it has been flagged since jan. Although the statement that came with the downgrade is pretty damning. http://ftalphaville.ft.com/blog/2009/03/30/54198/sp-strips-ireland-of-its-triple-a-rating/ @Brian, isn’t that almost fully priced in already? Hardly a surprising downgrade, it has been flagged since jan.

Although the statement that came with the downgrade is pretty damning.
http://ftalphaville.ft.com/blog/2009/03/30/54198/sp-strips-ireland-of-its-triple-a-rating/

]]> By: Brian Lucey http://www.irisheconomy.ie/index.php/2009/03/30/avoiding-confusion-on-the-structural-deficit/#comment-3333 Brian Lucey Mon, 30 Mar 2009 16:37:58 +0000 http://www.irisheconomy.ie/?p=1330#comment-3333 wonder what the downgrade to AA+ will do to the bond financing costs? Hasnt blown up yet.... wonder what the downgrade to AA+ will do to the bond financing costs? Hasnt blown up yet….

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