Predicting the end of the credit crunch is for the foolhardy. However, when the markets do eventually stabilise, Roy Parker, partner at McCann FitzGerald solicitors in Dublin, believes Ireland has just the product to help banks fund their balance sheets.

The Irish covered bond – branded as an “asset covered security” or ACS – is a bond underpinned by Irish legislation and backed by a ring-fenced pool of assets on the issuer’s balance sheet.