by Constantin Gurdgiev, 13 March 2009
The media is now ‘seriously’ talking about the Government setting up a ‘shamrock’ SFEF-styled bond (named after Societe de Financement de l’Economie Francaise guaranteed bonds issued by the French) for Ireland (see here).
The bonds peddlers – primary and secondary alike – have been enthused. The idea is that an already nearly-insolvent state will issue strong-guarantee senior, cash-redeemable only bonds covered by Ireland’s AAA rating for a large volume issuance, blah-blah-blah…
In reality there are serious and insurmountable problems with the idea of Ireland Inc issuing a SFEF to be disbursed across Irish banks in order to aid their capitalization and re-start lending. Link to full article
