Irish bail-out fails to stem default fears
Credit default swaps on Irish debt continued to rise after the approval of €85 billion in EU aid.
Despite the European Union's endorsement of an €85 billion loan package on Sunday, five-year credit default swaps (CDS) on Ireland's sovereign debt increased from 604 basis points on Friday to 612bp as of 1pm GMT today.
Ireland's banks fared better, however, with €10 billion of the bail-out earmarked for their recapitalisation, and the dropping of the proposal for their senior bondholders to take a haircut.
CDSs on Allied Irish Bank fell from a record high of 22.87% up front at end-of-day on
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