Junk bonds?

ACCORDING to Brian Lenihan, NAMA “will deliver part of the payment upfront in the form of bonds that the banks can immediately exchange for cash on the international money markets”.

If this “upfront” payment is €60bn, as suggested, has anyone asked the international money markets if they are willing to cash this chunk of possibly worthless paper, or will they in turn demand another steep discount? Or maybe Mr Lenihan is still not able to think past his own nose.

John Hanly