Noonan faces uphill challenge in pursuit of bondholders

AFTER imposing losses of about €15 billion on junior bank bondholders, Finance Minister Michael Noonan is taking aim at senior debtors in what may prove to be a fruitless battle.

Irish sovereign bonds have delivered the biggest gains in the world since the end of June. By contrast, bank securities have trailed, as Noonan prepares to open talks next week with his European counterparts on sharing the cost of bailing out Anglo Irish Bank with owners of senior debt.

Yesterday, Anglo’s chief executive said he does not see the European Central Bank agreeing to the Government’s wish to force burden sharing on the failed lender’s unsecured senior debt.