There is an increasingly claustrophobic feeling to Ireland's relationship with the capital markets. While the country's track record of transparency should help it steer through its current troubles, the long term picture is increasingly bleak.

The focus this week has been on Anglo Irish Bank, following a downgrade by Moody's yesterday and after analysts cited a press report from the Irish Independent that there is a planned buyback of €2.4bn worth of subordinated bonds in the offing.