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THE HEAD OF the National Treasury Management Agency John Corrigan said he has seen a greater diversity of people looking to invest in Ireland, with a lot of interest being shown by European insurance companies.
However, he said that Moody’s credit rating agency’s sub-level rating of Ireland is side-lining Asian investors.
Speaking on RTE’s This Week radio programme, he said the market is looking for the debt to be stabilised and keeping an eye on the credit rating agencies is a part of that.
Moody’s
He said if Moody’s were to move on their rating it would be “very significant”. He said that a shift down in yields would mean Ireland would get a better price for our debt.
If grading went up it would mean there are more buyers and investors, meaning a higher demand for Irish bonds and a lower price for our debt, he said.
Corrigan said Moody’s concerns have been largely about “systemic issues in Europe,” adding, “they state that it is nothing personal to Ireland”. He said there is evidence that they are softening their Euro-skepticism.
Bailout exit
When asked what role the NTMA had in this week’s bailout process exit, he said they provided feedback to the Minister for Finance about what to expect from the markets.
“We in the NTMA are very cautious people as we have to manage big risk,” he said, adding that the NTMA would have engaged with market after it became public about the possibility of an emergency credit line being issued.
“We felt it was safe to air issue with the market and the markets take on it was quite relaxed,” said Corrigan.
He added that Ireland’s decision not to apply for credit line following the bailout exist doesn’t rule out OMT benefits.
Speaking about the markets he said:
We are fully funded to the middle of the first quarter of 2015, but we would be engaging with the market in 2014 by way of pre-funding for the following year.
The timing is very important in terms of the annual servicing of the debt, he said.
Corrigan said there is a need to return to a regular programme of issuance, adding they are looking at a programme options for next year, and “we hope to make announcement on the capital markets in early January,” he said.
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Some European insurance companies interested in buying our bonds? What could possibly go wrong? Will this news fit for the FG cheerleaders? They who are preaching that we have “exited” the bailout? Here’s the thing: we haven’t. We have stopped RECEIVING payments. We now start paying it back with heavy interest. Stop the propaganda.
Sean- we’re in debt? Jesus. Why didn’t someone say that? And there was Fine Gael saying everything is Rosey in the garden! Oh wait, no. Actually the Taoiseach pointed out that we had our economic sovereignty restored which is a positive but that there’s a long, hard road ahead. It really is pathetic how people like you try to distort any good news and are so determined to spread doom and gloom. It’s really dispiriting that you do enjoy being a naysayer. Criticising FG about the debt, by the way would have a bit more legitimacy if they had accumulated it in the first place. But hey, it’s just easier to blame “the Government” isn’t it, irrespective of the truth. Embarrassed for you, I really am.
This is good. European Insurance companies big buyers of bonds. One thing that is a problem for Ireland is that the ordinary person in Ireland does not invest in bonds, which is usual and a problem for us as all the interest that the Govt. pays goes abroad.
As ever in Ireland it is easier for people to complain that do something about it.
Every Govt. issues bonds, it is part of normal life for the last 200 years. Are we gone so mad in the head that we can no longer differentiate between the wrong of paying back failed bond holders with the economic reality of all countries issuing bonds.
You’re embarrassed for me Kevin? This makes me feel very sad. I can only imagine what it’s like to be a FG troll on this site. I’m not one to be against good news. By God, I’d be delighted if we exited this recession. I am, however, a realist and know that the spin that’s put on us getting the last payment of a whopping loan doesn’t deserve the fawning you and you ilk give to gormless Enda and his band of merry idiots. Enjoy your evening, there’s a FG Bridge somewhere getting lonely without you.
hahaha sean thats the best putdown ive heard in a long time but its wasted on kevin….he is happy because he is one of them…he doesn’t mind that our country is being asset stripped or we are now owned by banks…as long as his FG is in power he cares nothing for the welfare of this country just the preservation of his party….gombeenism is alive and well
If the Socialist party or Sinn Féin or FF or a Govt. of any type were in power, even if we had the lowest debt in Europe , if there had been no crash we would still have to issue bonds and insurance companies would buy most of them from us.
This article has nothing to do with the wrongs of the last few years.
FG/lab legitimized the illegal FF promissory notes with another late night in haste bill. The country will not forget or forgive this circumvention of the Hall case reaching the Supreme Court. The annual interest of these illegal actions have been strapped to our kids backs for generations to come and FG and as complicit in this as FF.
Kevin fg and labour are liars, that’s why people are pissed with them.
remind me of the Schindlers list scene where the SS guy tells the Industrialists they dont have to pay the slaves and they can work then 24 hours a day if they want. Here the Irish state is promising to tax its own people and whatever else it takes to pay the unsustainable debt.
The sooner the global bond bubble blows up the better
Yes. It is no coincidence they are called “bonds” as in bondage :-)
Yes D4. And when the bubble bursts, you will need Christian people around to pick the the pieces.
Typical Journal. Pick the negative comment out of a broadly positive interview for the headline.
We can borrow as cheaply as we like, but the point that seems to be come telly missed is how much of the borrowings are needer to pay off bank debt. Austerity is here forever, unless you’re part of the gang. It’s complete propaganda
It is not positive. It’s not positive that the precautionary credit line was not given to us. Why was it not given to us?
Here’s why IMO. Because Merkel is trying to form a Government with the SPD, and the SPD are vehemently opposed to us receiving ‘another red cent’ to use Noonan’s ill fated words.
Ireland was no doubt told by their German masters to make this announcement to remove it as an issue in the government formation negotiations. We are but a plaything.
Luke- we didn’t take it because there would be more conditions attached. And for every Irish person every single second our fiscal strategy was being dictated by others should be unacceptable. And I honestly believe the Government took the first opportunity to stand on its own feet. Had it been available without conditions, no doubt we would have taken it.
I disagree, Kevin. Not having the precautionary line actually creates fiscal uncertainty, and is not good for any investor looking our way. A precautionary credit line is something that doesn’t have to be used. Anything that can be done without a precautionary credit line can also be done with one. However, without ine, we run the risk of running out of funds and having to negotiate a new bailout under far less positive circumstances than currently prevail. This adds to the uncertainties facing us, particularly given the possibility of having to further recapitalise the banks next year.
It was a political failure, no doubt about that, on behalf of Noonan and Co.
In fact, Noonan acknowledged yesterday that economic conditions may not be so benign next year. This should be seen as an argument for negotiating a credit line now but, strangely, Noonan used this observation as an argument for not seeking a credit line. He seemed to be struggling to find anything better than weak talking points to explain the benefits of not having a credit line.
Luke- you’re completely ignoring the conditions that would be attached to any such credit line.
What conditions?
Your friends in the SPD were demanding an end to our corporate tax rate, for example with strong support from the Dutch and Finns. Such terms would have to have been negotiated, that process breeding uncertainty too. If the original “bailout” taught us anything is that Europe’s Credit Card doesn’t come without strings.
No party in Germany is concerned with Ireland or any other European country, they are just looking after Germany as they were elected to. Yes that makes a mockery of the whole notion of EU solidarity and shared institutions but that is the world works.
Blaming it on Moody’s now, always someone else’s fault, the fact is Ireland is in trouble for a long time to come, the cost of bailing out the banks is going to haunt us for years and watching Patrick honahan on prime time the other night telling us because of the streets test coming down the road we will have to give more money to the banks, what a mess this country is in and to be honest if Moody’s was to tell the truth we would be classed as junk status for a long long time to come,
Ireland has an investment grade credit rating from S&P and Fitch, it’s also likely that Moody’s will upgrade its rating in the near term. When the Moody’s upgrade comes, Irish bonds will be eligible investments for a much larger pool of investors (as rated investment grade by all rating agencies).
Blame it on the sunshine , blame it on the moonlight ,blame it on the good times . blame it on the moody. Sunshine ….. Moonlight. God times. moody.
I just can’t, I just can’t, I just can’t control my debt. ….Moody!!!
What drugs is this man on? Investors are not interested because our total debt is already massive. No chance of paying it back.
Investors are massively interested in our debt. They care about the now and meeting targets in the now. They also now that Ireland will not be let default because countries like Belgium, France, Italy, Portugal and Spain are all on the edge as well. One goes they all go. The ECB will step in one way or another to pay back the debt. They can’t loose.
Once Ireland enters the bond market we will be tossed around like a tiny cork in a stormy sea. Rates will move up as Europe grapples with QE related inflation. A modest rise in ECB rates will hammer household balance sheets and annihilate bank tier 1. Bank recap will then follow by a wholesale attack on depositors. This entire debacle is down to German intransigence and a spine less Irish political class.
“He said that a shift down in yields would mean Ireland would get a better price for our debt.”
How insane is that?
What is the rate Now? Not mentioned in the article. Typical vague reporting from the Journal, very poor effort.
It’s all spin and this our Country is a shambles. E. Dumphy is right it’s a kip. run by a Mafia type Government. We were sold out a long time ago Europe has us by the Bollocks and they will never lett go.
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