Ireland steps closer to the core

摘要

Ireland took a step closer to core European sovereigns while slashing its funding costs last week, raising a €3.75bn May 2030 issue at a record-low yield. The issuer paid a 2.4% coupon, 100bp less than its last syndicated bond in January, which was five years shorter too. While sovereigns across the eurozone have seen their funding costs drop this year, market participants agreed that this trade took Ireland closer to full rehabilitation. "Ireland has consistently been the textbook example for exiting the bailout programme; it's been the template other sovereigns have followed and is now forecast by the European Commission to be the fastest growing economy in the eurozone this year," said Daniel Shane, head of SSA at Morgan Stanley.