Insights

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541 insights found

France Economic Weakness
27 Dec 2024Economic Updates

France Economic Weakness

France faces a period of profound political and economic instability, marked by rapid government turnover, rising bond spreads, and waning investor confidence. While short-term risks remain contained, sustained political fragmentation could undermine fiscal stability and market trust.

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Connecting British and American Yields
05 Dec 2024Borrowing

Connecting British and American Yields

UK gilt yields closely track US Treasury yields due to shared monetary policies and global factors, with recent political and economic developments suggesting continued correlation, particularly at longer maturities.

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Bond Buyback for Birmingham City Council
20 Nov 2024Borrowing

Bond Buyback for Birmingham City Council

Arlingclose has successfully supported Birmingham City Council in repurchasing £73m of its 9.675% bonds due 2030, replacing them with £88m of new funding from the Public Works Loan Board at an average rate of 4.6%. The refinancing is projected to save £2.8m over five years, significantly reducing interest costs while maintaining a similar repayment profile.

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Scottish Local Authority Investment Balances
19 Nov 2024Local Authorities

Scottish Local Authority Investment Balances

Scottish local authorities' investment balances dropped 20% to £2.4 billion over 12 months to September 2024, outpacing the UK-wide 11% decline, driven by rising expenditure, reserve use, and reduced long-term borrowing. Amid tighter liquidity and 5.5% short-term loan rates, councils face seasonal cash flow pressures but are leveraging higher rates for investment opportunities through proactive financial management.

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What are gilts and why do their yields matter for UK local authorities?
29 Oct 2024Investing

What are gilts and why do their yields matter for UK local authorities?

Look into UK government bonds, or gilts, including their origin, types, and market dynamics, and the inverse relationship between prices and yields. Explore the impact of gilt yields on borrowing costs for UK local authorities and see how economic and political events drive yield volatility, affecting public sector financing.

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How Do I Capitalise Interest Costs?
22 Oct 2024Technical

How Do I Capitalise Interest Costs?

How capitalising interest costs can lead to significant savings for your authority, and ensure compliance with accounting policies.

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Local Authority Borrowing Option – National Wealth Fund
16 Oct 2024Borrowing

Local Authority Borrowing Option – National Wealth Fund

The UK Infrastructure Bank has become the National Wealth Fund, now operating with a broader mandate and increased capital. It remains a competitive source of finance for local authority infrastructure projects, particularly those targeting climate change and sustainability goals.

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Stay Ahead of The Curve
10 Oct 2024Economic Updates

Stay Ahead of The Curve

Learn how yield curves play a crucial role in financial analysis and interest rate forecasting, offering valuable insights for smarter treasury management and decision-making in your local authority.

Read insight: Stay Ahead of The Curve