Summary:
A world of record-low rates has created an entire club of governments and public sector bodies currently being paid to borrow from the bond market, from Germany to the European Investment Bank.Late last week, that club got an inconspicuous new member -- none other than Redbridge Council, one of the 24 councils in Greater London, which has just borrowed £75m at a negative real yield.Despite the heavy focus on negative yields, there has been less scrutiny of what the proceeds are spent on -- the amounts are usually lost in the vast expenditure across national accounts.Redbridge’s borrowed money is expected to be spent on “capital expenditure” -- more granular details were not provided in the announcement. However, the council just last month unveiled plans to spend £45m on buying housing
Topics:
FT Alphaville considers the following as important:
This could be interesting, too:
A world of record-low rates has created an entire club of governments and public sector bodies currently being paid to borrow from the bond market, from Germany to the European Investment Bank.Late last week, that club got an inconspicuous new member -- none other than Redbridge Council, one of the 24 councils in Greater London, which has just borrowed £75m at a negative real yield.Despite the heavy focus on negative yields, there has been less scrutiny of what the proceeds are spent on -- the amounts are usually lost in the vast expenditure across national accounts.Redbridge’s borrowed money is expected to be spent on “capital expenditure” -- more granular details were not provided in the announcement. However, the council just last month unveiled plans to spend £45m on buying housing
Topics:
FT Alphaville considers the following as important:
This could be interesting, too:
Tim Harford writes My books of the year 2019
Miles Kimball writes Avi Loeb: Curiosity, Not Careerism in Science
Menzie Chinn writes Private nonfarm employment: BLS vs. ADP
Tyler Cowen writes Saturday assorted links
A world of record-low rates has created an entire club of governments and public sector bodies...