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Cash back on bonds

THE decision by AIB not to pay a coupon on a subordinated bond has triggered a 'failure to pay' credit event, according to the International Swaps and Derivatives Association (ISDA).

It means bondholders are likely to be able to get some money back under insurance measures known as credit default swaps (CDSs).

The decision overrides a previous announcement by ISDA that a restructuring event had taken place on June 9.