Guarantee end to throw up options on Anglo debt
Markets like order, and they like information. At the moment we are providing neither and it's costing us dearly.
The end of the State's guarantee of €2.4bn of Anglo's subordinated bonds at the end of the month creates an opportunity to address both issues. This week, holders of the bonds were ringing around London advisers for any steer on where a possible removal of the guarantee leaves them and what could be coming down the line.
The expiration of the guarantee raises the possibility of an Anglo default. A default on unguaranteed Anglo bonds must not be confused with a national default.