Junior debt holders won’t be saved

Things may have been different if the blanket bank guarantee was issued just one month earlier, writes Europe Correspondent Ann Cahill

JUNIOR bondholders — mostly overseas hedge funds and high risk investors — are set to lose about three-quarters of the €7 billion they hold in Irish banks as part of the restructuring of the sector.

But while the Government acceded to ECB demands not to force senior bondholders to take losses, those with holdings still in Anglo Irish Bank could find themselves losing considerable sums in May when that bank is tested.