Martin Mansergh (Tipperary South, Fianna Fail)

The State guarantee was extensive and comprehensive to provide confidence among senior investors in the wholesale capital markets. In recent years, as a result of tightening credit spreads, traditional investors in senior unsecured debt have increased their exposure to non-deferrable dated subordinated debt lower tier two in search of additional yield. In September 2009, the overlap in the investor base for both senior bank debt and lower tier two was extremely high. Therefore, it was believed important to the success of the guarantee that dated subordinated liabilities be included.

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