Concern over yield on Irish syndicated bond issue

The yield on the syndicated tap bond issue on Tuesday was below the rate secured when Ireland had a AAA credit rating, but the spread against the 10-year German bund remains a concern, according to NTMA chief executive John Corrigan.

The spread on the syndicated tap was 280 basis points. The Governor of the Central Bank, Patrick Honohan, said this level was unjustified in view of the fiscal adjustment that has been undertaken in this country. Mr Corrigan said a tighter spread hinged on a number of issues, including the country’s credit rating.

Moody’s still has Ireland at sub-investment grade, which Mr Corrigan described as “depressingly low” but reflected the dislocation in the eurozone between core and periphery countries.