https://www.buzzsprout.com/admin/1811593/episodes/16412873-perfect-storm-hits-sterling-bond-market
UK chancellor of the exchequer Rachel Reeves and her plans for the country's economy are under close scrutiny from investors this week if rising Gilt yields are anything to go by.
This has lead to references in the press to the 2022 Gilt crisis, which the Conservative government caused with its notorious mini-budget of tax cuts to be fuelled through Gilt issuance. There have even been comparisons with 1976 when the UK took a loan from the IMF. We find out whether such comparisons are warranted.
In any case, what's bad for UK taxpayers appears to be fantastic for issuers and investors in the sterling bond market with record volumes of issuance being priced this week. We explain what is driving the market if the economic picture is really as bad as it is being painted to be.
We also take a look at the rise of the deb-for-nature swap — a financial package that allows distressed sovereigns to restructure debt and put money towards environmental causes.
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