Irish CDS Surges To Record Levels On Potential IMF Intervention, rumours Of Anglo Irish Default

Irish bank CDS has blown out to a new record level this morning as a result of news the IMF may have to intervene in the country and rumours Anglo Irish Bank may yet default.

Markit reports CDS on Irish sovereign debt is now at 425 bps, that’s a 38 bps increase.

All of this goes back to yesterday’s Barclays report on the state of the Irish economy and the country’s bank bailout.

Anglo Irish Bank continues to represent a growing portion of the banking bailout for Ireland. The threat of default was thought to have diminished after last week’s announcement that the bank would be split in two.

But it hasn’t stopped investors from worrying about a default and the impact that might have on the Irish state.

Reminder: Here’s how Ireland got into this mess >

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