The Irish Independent has today reported that a punt on Irish government debt by a US bond investor during the economic crash has paid off, reportedly netting a massive $5.6bn (€5.1bn) return on the investment.
As a top money manager with US investment house Franklin Templeton, California-based Michael Hasenstab bought up Irish government bonds, or IOUs, in the middle of 2011 when few others would touch them.
The funds he controlled effectively lent money to Ireland at the height of the financial crisis - when the country was locked out of the international money markets - in return for holding the bonds.
This was regarded internationally as a risky investment. At the time, the interest rate on the debt had soared to almost 14%.
Ireland's debt rating had also been downgraded to junk status by ratings giant Moody's, amid concerns that the State was struggling to pull itself out of the crisis and fears that it might need another bailout.
But Mr Hasenstab remained confident about the prospects for the Irish economy.
According to financial newswire Bloomberg, Mr Hasenstab's investment funds enjoyed a return of a massive 70% or around $5.6bn.
Source: www.businessworld.ie