Mainstream investors wary of return to Irish debt

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By Jeremy Gaunt, European Investment Correspondent

LONDON, Nov 17 (Reuters) Appetite for Irish canada goose coats on sale sovereign debt remains scant among large investors, with many believing the political backdrop is too murky to take a punt despite the high yields on offer and the safety net of a probable bailout.

Interviews with major investment houses this week indicated that while some hedge funds may have been buying into Irish bonds in a limited way recently, overall, cheap Canada Goose major investors are still canada goose clearance sale wary.

Managers cited an unusual degree of canada goose store uncertainty canada goose coats about whether Ireland would accept a bailout and how it would buy canada goose jacket cheap work. Tuesday decision by euro zone ministers to send a joint European Canada Goose Coats On Sale Union International Monetary Fund mission to Ireland simply delayed clarification. [ID:nTOPNOW2]

Funds ranging from the mainstream fixed Canada Goose Jackets income group at Investec Asset Management to the less constrained absolute returns team at HSBC Global Asset Management say they have no Irish debt and no plans to canada goose uk black friday buy any.

is so much uncertainty, said John Stopford, head of fixed income at Investec AM. is making a speculative decision Canada Goose Outlet on political decisions. Canada Goose Parka We need a lot more clarity on how this Canada Goose Online is going to work buy canada goose jacket out canada goose factory sale over the next five years.

British fund firm Standard uk canada goose Life Investment Canada Goose online actions with its Irish sovereign debt underline that view.

Correctly anticipating at the beginning of summer that the spread of 10 year Irish yields IE10YT=RR over German Bunds DE10YT=RR was too narrow, it moved its exposure to underweight against its benchmark, selling a lot of the debt it was holding.

The spread has widened to cheap Canada Goose outlet Canada Goose sale a high of around 680 canada goose basis points recently from some canada goose uk outlet 260 basis points in early June.

But the firm still holds some Irish bonds, believing Irish fundamentals are better than some other peripheral euro zone economies. It holds no Greek or Portuguese bonds, for cheap canada goose uk example.

That said, the firm is not currently increasing its exposure to Ireland because of the uncertainty surrounding it.

are concerned that if they accept any funding from the EU or IMF (International Monetary Fund) there is the potential that Irish government debt could be downgraded, said investment strategist Richard Batty. could trigger another wave of selling, this time from passive index funds.

Passive, or tracker, funds follow canadian goose jacket an index and cannot change their exposure to individual assets as long as they remain in the index. A downgrade could kick Ireland out of some indexes.

SOME INTEREST But interest in Ireland is not completely absent.

Hedge funds, notorious for canada goose uk shop not talking about their trades, appear to be betting on Ireland, at least in a limited way.

managers we know, if they engaging with Irish debt, would be buyers rather than sellers, but they would be very short term buyers, opportunistic, said Serge Umansky, chief executive canada goose clearance officer and co head of investment canada goose black friday sale management at fixed income fund https://www.cagooseclearance.com of hedge funds Signet Group uk canada goose outlet.