According to many market commentators, the UK debt market is looking sick and is at a critical juncture. It is amongst the most unloved government markets in the developed world, which is understandable given the British inability to save in…
Monthly Archives: January 2010
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Guest contributor – Jeff Spencer (Financial Institutions Credit Analyst, M&G Credit Analysis team) In an attempt to reduce risk-taking at financial institutions, yesterday President Obama announced a proposal to bar banks from engaging in proprietary trading activity that was unrelated…
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UK money supply shrinks by most ever – QuitE a Dilemma
- Topics
- quantitative easing, UK
Posted January 21st, 2010
Today we have seen the preliminary release of M4 money supply (so-called ‘ broad money’), and it could potentially be a very important piece of economic data. December saw a 1.1% drop in the money supply, the largest monthly fall…
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Expectations had been for a big jump going into this morning’s release of December UK inflation statistics, however expectations still weren’t high enough. The year-on-year CPI inflation rate surged from +1.9% to +2.9%, eclipsing the average forecast of 2.6% (economic…
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There has been a lot of anguish and complaints from bankers about Obama’s tax on banks, and complaining why they have been singled out. Some of this is the usual self interested financial posturing (they are bankers!), some of it…
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Last week’s BWIC list (bids wanted in competition) from the Bank of England gave further evidence, if it was needed, that the demand for Sterling corporate bonds remains very strong. The table below, kindly provided by HSBC, shows the bonds…
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Happy New Year. Over the past couple of weeks, the cost of buying protection to insure against a default by the UK government has risen to exceed the cost of insuring a basket of European investment grade companies. The chart…










