Front page of the FT again today
Eurozone test over Ä25bn repayment
Irish banks are gearing up to repay more than Ä25bn of debt in the coming month, in what could prove an important test of investor sentiment towards the broader eurozone financial sector.
Bond markets will begin to re-open in Europe this week after the summer hiatus. The Irish redemptions have prompted concern over whether a slew of bonds from the country, to refinance the maturing debt, could weigh on the wider market and affect investor appetite for other bank borrowing.And more..But increasing concerns about the health of Irelandís economy have raised the premium it pays over benchmark German borrowing costs to record levels, which will push up the price the countryís banks must pay to refinance their debt.
ďThere is a concern that thereís a lot of need to issue by Irish and Spanish banks this month [September], and when they do come to the market, what price they will have to pay,Ē said Rohith Chandra Rajan, an analyst at Barclays Capital.
Ireland seeks to wean banks off state guarantee
Adding further to Fridays FT editorial calling for senior bondholders to share some of the losses