NAMA wind-down may boost bailed out AIB
CLOSING down the National Asset Management Agency early could benefit bailed out AIB, which has 15pc of its financial assets in NAMA bonds, one of the country's leading stockbrokers has said.
Goodbody said the bonds act as a structural drag on the bank's margins. But it warned that an accelerated sale of the bad bank's portfolio could have a negative effect on valuations on commercial property.
"Any accelerated wind-down over such a short timeframe may have consequences for CRE valuations, but would certainly provide opportunities for the likes of the REITs," Goodbody's Eamonn Hughes wrote in a note to investors.
"In addition, any quickening in the pace of NAMA's deleveraging is a positive for AIB given 15pc of its financial assets are NAMA senior bonds, a structural drag on its margin."
Finance Minster Michael Noonan has asked NAMA to weigh up the pros and cons of an accelerated sale that would see the agency shut earlier than the original 2020 deadline.
Possibilities could even include a quick sale over a sixmonth period.