Anglo could raise €860m in buyback

ANGLO IRISH BANK could raise €860 million core capital by buying back loan bonds at a discount, according to analysts at Bank of America Merrill Lynch.

Anglo Irish Bank Corp’s lower tier 2 notes are undervalued because the bank is likely to redeem the debt at a premium, Bank of America Merrill Lynch analysts said.

Investors should buy Anglo Irish’s lower tier 2 bonds maturing in June 2016 and June 2017, according to a Bank of America note to clients.