Dáil Éireann Debate, Tuesday - 4 December 2012
145. Deputy Stephen S. Donnelly asked the Minister for Finance the work that has been done to determine which of the senior bondholders in the State guaranteed institutions had insurance on their holdings, such as credit default swaps; the results of these investigations were; and if he will make a statement on the matter. [53892/12]
View answerAs previously outlined to the Deputy, it is not possible to identify the senior bondholders invested in specific institutions at a given point in time. As these securities are freely tradable once issued it is not possible to trace their ultimate ownership. These securities are traded and dealt through market participants and settled by clearing house systems. An issuer does not have any access to the records of the clearing house. At maturity, the Bank will instruct its paying agent to transfer the funds due to the clearing house who will then distribute the funds to the holders of the securities as per their records. Even where the bank is presented with lists alleging to represent names of bondholders I am informed there is no way for the bank or anyone else to completely verify the accuracy of such lists.
Therefore, I can confirm that the only accurate record of the holders of such bonds is the initial purchasers of the specific bond issuance. Regarding the levels of insurance undertaken by individual holders of bonds in the Irish covered banks, speculating as to how individual bondholders might mitigate against the different risks associated with managing their portfolios is not an area I can advise the Deputy on.
