Just had a bond mature. Having looked at their CDS rate decided to panic and move money out to my normal bank current account. I know the money is guaranteed but if the bank fails, presumably there's months to wait to access the money, and with no interest. Anglo Irish front page website is full of good news about how safe they are - which instantly makes me worry that they are not.
Shame though as their customer service seems excellent. They do a CHAPS transfer at no extra cost. I literally came off the phone and the money turned up in my current account within minutes.
Full Version: Anglo Irish
how high is there CDSs
QUOTE (qwe3333 @ Oct 11 2008, 10:25 AM) 
how high is there CDSs
don't know now unfortunately but the last time someone with access to Bloomberg posted on the CDS thread it was in the high 400s
QUOTE
he cost of insuring bonds of Irish banks against going into default shrank dramatically yesterday as the markets reacted to the Government's dramatic move yesterday morning to safeguard €400bn of deposits and debts of six lenders.
The scheme guarantees deposits at Allied Irish Bank, Bank of Ireland, Anglo Irish Bank, Irish Life & Permanent through its Permanent TSB unit, Irish Nationwide Building Society and EBS Building Society for two years, as well as covered bonds, senior debt and dated subordinated debt.
So-called credit default swaps (CDS) -- financial contracts conceived to protect bondholders against default -- were trading at record highs in light of the unprecedented financial turmoil over the last few weeks.
However, three-year CDS contracts on Allied Irish Banks plummeted from 320 basis points -- or 3.2pc -- to 120 points yesterday, dragging the cost of insuring €10bn of the group's debt against default down to €120,000.
Bank of Ireland's CDS spreads sank from 385 basis points to 130. More dramatically, Anglo Irish Bank's spread contracted from 725 basis points to 275 points.
The scheme guarantees deposits at Allied Irish Bank, Bank of Ireland, Anglo Irish Bank, Irish Life & Permanent through its Permanent TSB unit, Irish Nationwide Building Society and EBS Building Society for two years, as well as covered bonds, senior debt and dated subordinated debt.
So-called credit default swaps (CDS) -- financial contracts conceived to protect bondholders against default -- were trading at record highs in light of the unprecedented financial turmoil over the last few weeks.
However, three-year CDS contracts on Allied Irish Banks plummeted from 320 basis points -- or 3.2pc -- to 120 points yesterday, dragging the cost of insuring €10bn of the group's debt against default down to €120,000.
Bank of Ireland's CDS spreads sank from 385 basis points to 130. More dramatically, Anglo Irish Bank's spread contracted from 725 basis points to 275 points.
http://www.independent.ie/business/irish/h...ds-1486485.html
i think they are fairly safe. their fitch ratings are very good. although i personally closed my account too, cos i am being ultra cautious. I did like there service and free CHAPS transfers too.
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