Anglo Irish sub debt final price may be lower than 18.25

Today’s credit event auction for Anglo Irish credit default swaps has returned initial results of 18.5 and 18.25 for subordinated bond buckets two and three, respectively. These buckets refer to outstanding 2014 and 2016-dated bonds, which are the deliverable obligations into the sub auction following an exchange on 2017 bonds having been agreed. Subordinated credit default swaps on Anglo Irish had been quoted prior to the auction around 76.75-77 points up front.

Bucket two has open interest of €11.25 million to sell while bucket three has open interest of €30 million to sell, indicating that the final results may be lower than the inside market midpoints. 14 dealers have taken part in the auction.

Initial results of senior bond buckets have the sub/senior bucket one at 78.25, with €104.05 million open interest to sell, bucket two at 77.125 with €23.5 million to sell, and longer-dated bucket three at 76.25 with €22.55 million to buy. Senior CDS was quoted prior to the auction between 25.5 and 28 points up front. 

Final results will be published today between 3.40pm and 5.45pm UK time.