Saturday 18 November 2017

Bank of Ireland considers opening bond-trading desk

Laura Noonan

Laura Noonan

BANK of Ireland (BoI) is considering opening a bond-trading desk that would act as a primary dealer for government bond auctions.

The move would end Davy's status as the only Irish member of the 16-strong group of primary dealers for government debt.

It is understood that the bond desk would sit in BoI's treasury division, though sources stressed that no decision has been taken to open the desk.

BoI could make a decision on the bond desk within "months or years", one source said, adding that establishing the function wasn't a priority.

Setting up a trading desk would give BoI a fresh income stream against a backdrop of forced retrenchment at the hands of the European Commission.

BoI is preparing its New Ireland life-insurance division for sale and must also sell off asset manager BIAM and other non-core assets.

Earlier this week, Davy attracted more than 100 listeners to a conference call on the Irish outlook ahead of yesterday's bond auction.

Other primary dealers of Irish government securities include the London office of Citigroup; Paris-based HSBC France; Frankfurt's Deutsche Bank AG; London's Barclays Bank; and Amsterdam's ING.

Irish Independent

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