What price to pay for distressed assets? | 15 comments (15 topical, 0 editorial, 0 hidden)

Re: What price to pay for distressed assets? (4.00 / 2)

His party instead favoured setting up "a good bank", with a credit facility of up to €20 billion. This "National Recovery Bank" would have no toxic assets and so could lend to small businesses at reasonable rates, he said.

It is somewhere between gratifying and amusing to see a conservative Irish political party putting forth a proposal so similar to what I proposed eleven months ago for the US. At the very least it should get money from the banking sector flowing in increased quantities to Fine Gael.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Aug 26th, 2009 at 06:04:50 PM EST
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Re: What price to pay for distressed assets? (4.00 / 2)

The Government is making a great play of the fact that the IMF etc. and serious people internationally support their proposals. hy wouldn't they - if it is international bond holders who are being bailed out.

Their idea that bondholders/shareholders should continue to own the bad assets in Nama is also somewhat similar to Chris' idea of a debt equity swap. At least we are having a real debate about real political/financial issues.

notes from no w here

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Wed Aug 26th, 2009 at 06:48:28 PM EST
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Re: What price to pay for distressed assets? (none / 1)

I should have said Fibe Gael's idea of a debt equity swap for bondholders - which runs counter to the Government's proposals of the taxpayer taking on all the risk.

notes from no w here

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Wed Aug 26th, 2009 at 06:50:36 PM EST
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Re: What price to pay for distressed assets? (none / 1)

The danger here is that the Government will find some way to extend the guarantee to the bondholders, presuming that they indeed are the clients of said bondholders.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Aug 26th, 2009 at 07:05:42 PM EST
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Re: What price to pay for distressed assets? (none / 1)

The bondholders have already been guaranteed... see my LTE referenced in first paragraph

notes from no w here

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Wed Aug 26th, 2009 at 07:14:31 PM EST
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Re: What price to pay for distressed assets? (none / 1)

Sorry, I intended to refer to the banks, whose guarantee runs out in 2010.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Aug 26th, 2009 at 07:36:11 PM EST
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Re: What price to pay for distressed assets? (none / 1)

I think the bondholder guarantee also runs out in 2010 - which raises the possibility of a debt/equity swap at that stage.

notes from no w here

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Thu Aug 27th, 2009 at 05:28:51 AM EST
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What price to pay for distressed assets? | 15 comments (15 topical, 0 editorial, 0 hidden)