UK Gilts auction fails - ther IS a limit to what the market will buy .....
Storms can be presaged by the blowing of straw in the wind"of . Well the market landed a hefty bale of the stuff on Gordon Brown and Alastair Darling's desk today.
Today, in the normal way of things the Treasury Debt Management Office - auctioned £1.75bn of a 40 year bond ( of interest principally to annuity issuers - insueres pensions etc.,).
The market picked up 93% or only £163 Mn. of the issue.
The Debt Management Office has a Herculean task of borrowing at least £147.9bn of gilts in the next 12 months - there are many who say uncontrolled public expenditure might mean they could be looking for £200Bn.
There must be some sweaty palms in the Treasury this evening.
2 comments:
"Second is the question of accountability. The public, including United fans, cannot know who holds the debt in United. When the Glazers bought the club for £831m, the family itself paid £272m cash, £284m was loaned by their bank, JP Morgan, and "syndicated" to other banks, and the other £275m, which the family could not borrow at standard rates, was advanced at very high interest by three hedge funds, Citadel, Och-Ziff and Perry Capital. In 2006 the Glazers managed to refinance those original loans, but there has been no public disclosure of who holds the £425m, the other £90m, orthe high-interest £152m "payment in kind" loans"...
http://tinyurl.com/c7fmm8
PFI schemes will have to come "on-balance" from April 2009.
More info from this Irish Accountancy site here (discussing the effects on Northern Ireland).
Surely this will mean more debt on the government's books?
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