Anglo Irish Bank may need further auctions for credit default swaps

By Jennifer Chiou

New York, Jan. 4 - The International Swaps and Derivatives Association, Inc. announced that Anglo Irish Bank Corp. Ltd. may require one or more further auctions to settle its credit default swaps after the Europe, Middle East and Africa credit derivatives determinations committee resolved that a separate credit event has occurred.

The ISDA said in a release that the committee will only confirm whether auction settlement terms will be published after the cut-off date once it knows the volume of outstanding trades that have been triggered.

On Dec. 9, the company's credit default swaps were settled with the following prices after it was determined that a restructuring event had occurred on Nov. 24:

• 18.25 for the bank's CDS subordinated bucket 2;

• 18 for the bank's CDS subordinated bucket 3;

• 74.5 for the CDS senior/subordinated bucket 1;

• 76 for the CDS senior bucket 2; and

• 74.5 for the CDS senior bucket 3.

As already noted, one or more auctions were held for the different maturity buckets of the outstanding CDSs.

Anglo Irish is a Dublin-based provider of banking services.

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