Irish Deposit Guarantee Scheme Post Office

KingKenny

http://www.!!!!!!.uk/post-office-savers-to-receive-uk-protection-under-fsa/

However, under the Irish Deposit Guarantee Scheme the first £89,000 of savings were protected.

Post Office savers with over £50,000 of savings will still receive an additional guarantee under the Irish scheme until the end of the year.

So at the current exchange rate, you can put up to £85k in the post office accounts and recieve full protection?

Si

KingKenny

http://www.bloomberg.com/news/2010-11-10/german-bonds-decline-for-second-day-as-investors-prepare-to-absorb-issues.html

Might need it................................................



rish 10-year bonds tumbled for a 12th day, leading a rout in debt from Portugal to Greece, as LCH Clearnet Ltd. demanded its clients place a larger deposit when trading the nation’s securities after yields soared.
The Irish bond posted its longest losing streak in at least three years, sending the yield difference, or spread, over benchmark German 10-year debt to a record. Ten-year Portuguese yields jumped 26 basis points to 7.17 percent, while Greek and Spanish bonds also slumped. Bunds slipped as a sale of two-year notes attracted the lowest demand since May. The euro weakened and stocks declined.
“The increase in margin requirements affected not just Irish debt,” said Christoph Rieger, head of fixed-income strategy at Commerzbank AG in Frankfurt. The impact “is mainly restricted to Ireland, Portugal and Greece, but to a certain degree Spain also. Tensions are more likely to exacerbate rather than improve.”
The yield on the Irish 10-year bond surged 67 basis points to 8.76 percent at 5:06 p.m. in London. The 5 percent security maturing in October 2020 slid 3.74, or 37.4 euros per 1,000-euro ($1,374) face amount, to 75.74. The spread over bunds soared to an all-time high of 622 basis points, or 6.22 percentage points, according to Bloomberg generic data.
That compares with the record 973 basis-point premium on Greek 10-year debt, reached May 7, before the European Union crafted a rescue package worth 750 billion euros.
The yield on the 10-year bund, Europe’s benchmark government security, rose four basis points to 2.45 percent.
The euro weakened against the dollar, falling 0.3 percent to $1.3733. It dropped to $1.3671 earlier today. The Stoxx Europe 600 Index lost 0.7 percent.
Irish CDS
The cost of insuring Irish debt rose. Credit-default swaps on Irish government debt surged 18 basis points to 585 basis points, according to data provider CMA. Contracts on Portuguese debt increased 14 basis points to 467 basis points.
Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements. An increase signals a deterioration in perceptions of credit quality.
LCH said today that an additional margin requirement of 15 percent will be charged on investors’ net exposure from tomorrow, and the change will be reflected in a margin call in two days.
Margin Requirements
The world’s second-largest fixed-income clearing house told clients on Oct. 5 that it was considering the move after the yield on Irish 10-year bonds rose to more than 450 basis points above a euro-region AAA benchmark bond. Irish debt has plunged on concern that the cost of bailing out the nation’s banks has made the government debt load unsustainable.
Bonds from so-called peripheral nations, which include Ireland, Greece, Portugal, Spain and Italy, have dropped since European Union leaders agreed on Oct. 29 to consider German Chancellor Angela Merkel’s proposal for a permanent rescue mechanism as of 2013 that would involve debt restructuring with losses for private holders of sovereign debt. The proposal is part of discussions to create a permanent debt-crisis facility to replace the rescue fund created in May after Greece’s near- default and expires in 2013.
Portuguese Finance Minister Fernando Teixeira dos Santos today urged the EU to decide how such a mechanism will work.
“We have to make an appeal at the European level for the European institutions to rapidly, with the greatest possible urgency, clarify the terms in which this mechanism will function,” he told reporters in Lisbon.
Bond Sales
“No one is demonizing or blaming the market,” Teixeira dos Santos said. The main reason for the sell-off is “uncertainty” over the future mechanism, which is “penalizing the peripheral countries.”
The German government sold 4.93 billion euros of new 1 percent securities due December 2012. Investors bid for 1.4 times the amount of notes on sale, down from a so-called bid-to- cover ratio of 2.2 times at the previous auction of similar securities on Oct. 6.
Portuguese 10-year securities extended their declines for a third day, with the 10-year yield 26 basis points higher at 7.17 percent. The Portuguese-German yield spread widened 35 basis points to a record 467 basis points, according to Bloomberg generic data.
Portugal sold 556 million euros of bonds due in 2016 and 686 million euros of bonds due in 2020, the country’s debt management agency said today.
The Greek 10-year bond yield rose 26 basis points to 11.71 percent, pushing the spread over bunds as wide as 902 basis points, according to Bloomberg generic data.
‘Terrible Yield Levels’
The extra yield investors demand to hold peripheral debt may continue to rise, according to David Schnautz, a fixed- income strategist at Commerzbank in London.
“We expect these terrible yield levels to give the overall discussion about a possible far-reaching solution to the Eurozone debt crisis another boost,” Schnautz wrote in an e- mailed report today. “We still see the risks of a further spread-widening prevailing. That fits our view to be cautious on Eurozone government-bond spreads over bunds towards year-end.”
A bailout of Ireland and Portugal through the European Financial Stability Facility would resolve current market tension and not lead to contagion, according to Goldman Sachs Group Inc.
No Contagion
“The likelihood of Ireland and Portugal entering an IMF- designed adjustment program funded by the EFSF has, in our view, increased,”Francesco Garzarelli, chief interest-rate strategist at Goldman in London, wrote in a research report today. ‘Unlike in the aftermath of the Greek ‘bailout,’ we are of the view that such an outcome will not lead to contagion. Rather, it may mark a resolution of ongoing European Monetary Union sovereign tensions.”
Italian bonds dropped for a fifth consecutive day as the nation sold 5.5 billion euros of 12-month Treasury bills. The bills were sold at an average yield of 1.78 percent. Investors bid for 2.09 times the amount of bills on sale. That compares with a bid-to-cover of 2.16 at the previous auction of similar- maturity bills on Oct. 12.
Italian 10-year bond yields increased nine basis points to 4.13 percent. The Spanish 10-year bond fell, headed for its 12th successive daily decline. The yield gained 11 basis points to 4.53 percent.
German bonds have returned 8.6 percent this year, compared with an 8.2 percent gain for U.S. Treasuries, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. Spanish bonds gained 0.2 percent, while Italian securities rose 2.8 percent, the indexes show. Portuguese bonds lost 9 percent, while Irish securities declined 11.2 percent, according to the indexes.

Loughton_Monkey

KingKenny wrote: »

So at the current exchange rate, you can put up to £85k in the post office accounts and recieve full protection?

This has been the case for a while.

One has to wonder, however, who is guaranteeing the stricken guarantor!

KingKenny

Loughton_Monkey wrote: »

This has been the case for a while.

One has to wonder, however, who is guaranteeing the stricken guarantor!

Got my life savings in there £57k, a tad worried, might take it out, i got stung with IceSave, i don't want to lose another four months interest while waiting or my life savings back................

ManAtHome

I thought the Icesave stuff was paid up - how did you get stung?

KingKenny

ManAtHome wrote: »

I thought the Icesave stuff was paid up - how did you get stung?

4 months lost interest......................Money is money, i do not lend it out for free, well not until the B of I do an Icesave..............

missile

KingKenny wrote: »

Got my life savings in there £57k, a tad worried, might take it out, i got stung with IceSave, i don't want to lose another four months interest while waiting or my life savings back................

I am surprised you continue to save overseas. "Life savings" in Irish (junk?) bonds, are you greedy, brave or ............. :eek:

johnmoney05

missile wrote: »

I am surprised you continue to save overseas. "Life savings" in Irish (junk?) bonds, are you greedy, brave or ............. :eek:

.......Irish

Wishing

The Irish Guarantees haves been extended until the middle of next year 2011. this was approved by EU.

Will the UK Guarantees come under this scheme.

http://citywire.co.uk/money/ec-proposes-increasing-bank-deposit-compensation-to-100k/a413808

missile

johnmoney05 wrote: »

.......Irish

:rotfl::rotfl::rotfl::rotfl:

Stompa

KingKenny wrote: »

Got my life savings in there £57k, a tad worried, might take it out, i got stung with IceSave, i don't want to lose another four months interest while waiting or my life savings back................

I guess it depends on whether you think anything will go wrong before Dec 31 (when the FSCS guarantee increases from £50k to £85k).