Why BoE Hiking First May Be Best for Bonds
In the last month, global government bond curves have had a torrid time, with significant steepening seen across US Treasury, UK Gilt and German Bund yields.
Insights Topic
UK
Winter is Coming
It will take time for this sector to recover and we are likely to see more suppliers collapse in the coming weeks and months.
The UK Savings Ratio: How Far Can It Go?
The Bank of England have just added to the debate about how much of the recent surge in savings will be deployed in the form of consumption as we return to ‘normality’.
UK Credit Can Benefit From ‘Japanification’
As more government bond curves around the world join the select group trading at negative yields, we are seeing a spike in ‘Japanification’ headlines in the press.
Novel Twist in Nationwide AT1
Regular readers of our blog will know that in the world of additional tier 1 (AT1), the Nationwide Building Society has been one of our favoured issuers in the market. We held the old sterling Nationwide 6.875% perpetual bonds from launch in 2014, and were not in the least surprised when the issuer called the bond at the earliest opportunity in June, though it did leave us a gap to fill in the subordinated bank sector.
The ‘Rodney’ Blog 2019: Fake Recession Ahead
“This time next year, Rodney…”
A (Measured) Buying Opportunity in Credit
There were sharp declines across global risk assets on Tuesday, led by tech stocks but with barely an asset class left unscathed.
STS: Feel the Squeeze
Changes in regulations are typically long and drawn out, but their impact can often be felt quite quickly. There is every chance that this could soon be the case in ABS markets.
Another One Bites the Dust
Sadly this is not a review of the new Queen biopic, it’s a eulogy to a bond which was called today that is as well known in the securitisation world as Freddie Mercury is in the real one – Paragon Secured Finance 1 (or PSF 1 as we knew it).
Tesco Bonds: Time to Hit the Checkout?
In January 2015, after years of market share erosion and leverage increases, Tesco bonds were downgraded to junk status by Moody’s and S&P, forcing all of Tesco’s debt stack out of IG corporate bond indices in the process.
How Will Brexit Impact UK ABS?
This year has been a big one for sterling bond supply, especially in the ABS market. With the end of the Bank of England’s Term Funding Scheme and the comeback of traditional bank issuers, UK issuance volume year-to-date has totalled €25bn from 38 deals placed across different asset classes.
Healthy Tightening in UK Credit Conditions
This morning the much anticipated Q3 2018 Credit Conditions Survey was released by the Bank of England.