Jul 21

“So much stimulus, so little time….”

July 2020. Concerns continue to grow at the slow pace of the UK's post lock down economic recovery. Not only is there limited sign of the expected 'V' shape recovery but, crucially, the recovery lags behind it's peers and this is increasingly reflected in the exchange rate. We know the... read more →
Jul 17

The Pound Recovered Strongly Last Week But….

July 2020. At the start of last week Sterling fell sharply making fresh 3 month lows against the euro (with growing calls of parity from some analysts) as the markets focused on renewed Brexit nervousness amid concerns that economic recovery in the UK would lag behind that of the eurozone.... read more →
Jun 29

Sterling FX and Rates: a lot of reasons to be negative

June 2020. Speculation about negative rates being implemented in the UK has increased in recent weeksIn our view, the bar for the Bank of England to cut its base rate into negative territory is quite highEven if the Bank were to implement such a policy, we consider it would have... read more →
May 12

Improving Cash Flow by Refinancing Fixed Rate Repayment Loans

May 2020. Many companies will have fixed rate loans in place that currently have a fixed repayment schedule and are expensive to repay because of the associated break cost of doing so. Companies who need a boost to cash flow should look to discuss their options with their relationship bank as... read more →
Feb 24
Feb 24

Phase One Trade Deal Leaves Currency Markets Unfazed

January 2020. Currency markets are largely unmoved as the signing ceremony for a ‘Phase One’ trade agreement between the United States and China progresses in Washington... The interim deal is designed to trigger a substantial rise in Chinese purchases of American goods and launch a number of structural reforms -... read more →
Dec 07

Brexit Uncertainty

Dec 2019. Do you understand your company’s financial risks and is your hedging strategy fit for purpose? The backdrop of Brexit, weak economic data and an increasingly unstable political environment has further increased volatility in recent weeks, in what were already volatile financial markets. With Parliament now prorogated and the... read more →
Dec 05
Dec 03

How are borrowers adjusting their interest rate hedging strategies to take account of the impending General Election and the uncertainty surrounding the UK’s future relationship with the EU?

Nov 2019. Negative interest rates and refinancing risks remain hot topics. Some borrowers focus on certainty of funding costs while others are adding flexibility to their hedging plans. The hedging decision is often driven by how long the debt is expected to be in place, which is a key factor... read more →
Dec 02

Managing Conduct Risks in LIBOR Transition – FCA guidance

November 2019. On the 19 November, the FCA published clear expectations and guidance  for firms on managing the prudential, operational and conduct risks arising from the transition away from LIBOR. The scale and the complexity of the transition process have become apparent to both industry and the regulators as the end... read more →