Thursday 23 November 2017

Major European firms hold most bonds in bank

Emmet Oliver

THE main holders of bonds in Anglo Irish Bank are major European asset management companies, who invest funds on behalf of pensioners, investors and other governments.

One of the largest holders of Anglo Irish bonds is the Union Investment Group, a giant German company catering for private investors and institutions. Bloomberg data suggests it may be the largest holder of Anglo paper of those firms which have made public filings.

The Italian asset manager Arca is also a major holder, along with DWS Investment, an arm of Deutsche Bank.

Several UK investment houses also hold Anglo paper, including Barclays Asset Management.

The identity of Anglo bondholders has ignited a fierce political debate in recent months, with some commentators calling on the bank to reveal the names of Anglo bondholders.

However, in most cases the holders of the debt have no obligation to report their ownership.

The bond market is far less transparent than equity markets and bonds change hands constantly without any need to report ownership levels.

Irish institutions, meanwhile, are believed to have a large number of Anglo bonds as are Irish credit unions.

Irish Independent

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