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JEREMY HOBSON: Now to our top story. Ireland has agreed to accept a bailout from its European partners. This is to keep its banking system functioning.

Let’s turn to Guy Lebas, Chief Bond Strategist at Janney Montgomery Scott. He’s joins us now live from the trading floor there in Philadelphia. Good morning.

GUY LEBAS: Good morning.

HOBSON: Ireland — we checked — has about as much economic output as the state of Maryland. Why does this bailout matter beyond the borders of Ireland?

LEBAS: I think the biggest issue right now is really investor psyche. Particularly with regard to countries and country’s fiscal challenges and financial challenges. We can create contagion very easily which can spread both throughout a region and throughout the world — ultimately weakening investor confidence. In addition, with Ireland we also have the issue of the Euro. Their currency very much links them to many other countries throughout the region, making the sort of bailout more necessary and more complex.

HOBSON: What would have happened if there hadn’t been a bailout?

LEBAS: I think the rule with bailouts is the earlier, the bigger, the better. And it’s good to see this happening well before Ireland truly needs the cash. But I think the real risk here would’ve been severe weakening in the Euro currency and ultimately a potential to default, meaning that Ireland would’ve failed to pay on its debt. The bailout ensures that’s not going to happen, at least not for the foreseeable future.

HOBSON: Guy Lebas, Chief Fixed Income Strategist at Janney Montgomery Scott, thanks so much.

LEBAS: Thank you Jeremy.