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"There will not be any defaults on 16th November".
"There haven't been any defaults to speak of," he said.
(Investors who bought the newfangled securities would be left to deal with any defaults).
This would generate enough interest income to cover the costs of any defaults, administration of the trust and other expenses.
Asian banks also have little exposure to European debt, meaning that any defaults would not cause huge write-downs.
They would also have to pay insurance premiums to the F.H.A., reducing the risk to taxpayers of any defaults.
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And the eventual loss from any default should be mitigated by recoveries and hedges.
Third, it ensures that the cost of any default is borne first by the Irish state.
The Fed, not the banks, bears the risk of any default on the paper.
And 95percentt of the debt is held by Japanese people, which rules out any default similar to Argentina's.
Any default would probably be temporary, Rob Carnell, chief international economist at ING Bank, said in a note to clients Tuesday.
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