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Initial Results In Allied Irish Cds Settlement Auction: Senior Bonds At 71.375, Subs At 12

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Can someone translate this into English for me please?

Allied Irish Banks has announced that it will not be repaying money loaned to it via bonds.

CDS sellers (in effect insurance providers) need to work out how much the payouts should be, to investors who had bought CDSs. They held an auction to determine the value of defaulted bonds - the price of defaulted bond is the amount of money that investors expect to be able to retrieve by bankruptcy/legal negotiations.

The auction priced 'senior' bonds at 70% of face value (i.e. investors expect to be able to recover 70% of the original loan). The auction also looked at 'subordinate' bonds (these loans with lower precedence and less, or no collateral) which were priced at 12%.

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  • 439 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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