AIB Capital Markets’ Primary Dealer Unit (PDU) is to stop acting as a primary dealer in Government bonds as of the end of this year. AIB made the decision due to the lack of activity in the Irish Government bond over the past few years.
AIB’s impending absence from the primary dealer market means that there will be only one Irish bank left in the market – Bank of Ireland, through its stockbroking subsidiary Davy. However, it is believed that Davy is considering its position for 2006.
In May, The Royal Bank of Scotland became a primary dealer in Irish government bonds, bringing the total number of dealers to nine: ABN Amro, London; AIB Capital Markets, Dublin; Barclays Capital, London; Calyon, Paris; Citigroup Global Markets, London; Davy Stockbrokers, Dublin; Deutsche Bank, Frankfurt and London; and HSBC CCF, Paris.
In what is only its second auction of 2005, the National Treasury Management Agency (NTMA) is to issue a €700 million bond auction in October. The NTMA’s total funding requirement for 2005 is €4.5 billion. AIB moves out of gilts status |
