April 8 (Bloomberg) - BlueBay Asset Management, which oversees the 39 billion dollars in assets, purchases of Irish Government bonds because the pessimism surrounding the finances of the country has reached proportions "unrealistic".
BlueBay maintains its securities of Portuguese under the levels suggested by benchmarks because its economy is not able to compete, said Mark Dowding, a portfolio manager senior to the company based in London. The economy of the country will be struggling to grow, he said.Dowding has begun buying Irish bonds last week after the Government said that it would not penalize the Irish investors in bank debt. BlueBay has now more than Irish debt the level recommended by the index it uses to measure performance, a so - called overweight position. "The Ireland economy has a more competitive advantage compared with the Portugal, said Dowding. "We love the fact that the interests of the European Central Bank and the European Union policy makers are very much being observed by the new Government.". A restructuring of Irish public debt short term is extremely unlikely. "The demand of investors of performance for the holders of bonds issued Irish 10 years instead of the benchmark German bunds fell to base 575 today of 699 basis points points on 31 March, the highest in the folder. Performance on Irish security dropped 70 basis points this week at 9.28% from 12 h 24 in London.Irish 'new Government Relief' Ireland took his duties last month after Fine Gael Prime Minister Enda Kenny party ousted Fianna Failwho had run the country since 1997. Ireland gave to the ECB to protect the holders of bonds even though its invoice of rescue for the worst banking crisis in the region moved as many as 100 billion euros ($144 billion). "We were worried in the electoral process that the new Government may seem to turn its back on Europe and to try to rider only with an independent policy,"said Dowding." "It's a relief that he is not the case." In this environment, Ireland will continue to receive support and external assistance. We believe that a price risk in the Irish bond yields reached a unrealistic proportion. "Rich countries of Europe led the Portugal to make deeper cuts in exchange for a bailout plan that may be as much as 90 billion euros expected. The Iberian nation asked to aid two days after a government vacuum helped send record yields heights.The performance of the obligations of two Portuguese years jumped 18 basis points to 9.26%, up to the 267 points to base, or 2.67 percentage points, since Prime Minister Jose Socrates resigned on 23 March, after losing a vote on the implementation of austerity measures deeper.BlueBay was bought by the Royal Bank of Canada in December.-Editors: Daniel Cuddies, Keith Campbell
To contact the reporter on this story: Anchalee Worrachate in London at aworrachate@bloomberg.net.
To contact the editor responsible for this story: Daniel Cuddies to dtilles@bloomberg.net.
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