Green Bonds are misguided, counter-productive, and an investment handicap On Monday, the chancellor announced that the UK government will soon be issuing “Green Bonds”. In separate but related news, Scottish Widows will dump £400m of stocks that don’t meet Environment, Social and Governance (ESG) criteria. ESG compliance has become the first thing discussed at investment committee meetings. Everyone wants to show how green they [...]
Congratulations Brussels for capturing EU states’ financial sovereignty The European Union achieved spectacular market success this month when it launched its new “Support to mitigate Unemployment Risks in an Emergency” bond programme (SURE). The €100bn programme will be used by the EU to support member nations addressing pandemic job security and social welfare weakness over the next year. The first €17bn bond issue [...]
Be brave Mr Sunak… and keep spending Since Rishi Sunak stepped into the suddenly vacant 11 Downing Street back in February, he’s proved a fleet-footed chancellor, earning praise for the speed at which he launched the furlough programme, provided cash support to struggling companies, and stood behind the economy as the pandemic took hold. He quickly realised that extraordinary times required extraordinary [...]
The corporate bond market is set for a record year — but also a dangerous and dysfunctional one August 26, 2020 2020 is going to be a record year for the corporate bonds market. New issue investment grade volume in the first half of the year exceeded $2.5 trillion. Records are also being broken in high-yield junk debt, despite a rising corporate default rate. Last week, the US primary market broke through $1.3 trillion of new [...]
Without reform, the government’s Ponzi Pension Scheme will bankrupt us all August 5, 2020 For the past decade, financial markets have been dominated by the ongoing distortions set in motion by the last financial crisis in 2008. Regulatory overkill of City dealing, quantitative easing (QE) and zero interest rate policies (ZIRP) have combined to drive financial assets — stocks and shares — to record prices. Now, the consequences are [...]
Nicola Sturgeon talks a good game, but Scottish independence would be a catastrophe July 10, 2020 For everything Boris Johnson does, you can be certain Nicola Sturgeon will announce something different. While Boris blusters, Nicola states clearly and simply why and how her policies to protect Scotland are going to happen. Where Boris is distracted, she is focused. She’s a highly effective politician, who misses no opportunity to distance Scotland from [...]
Confession of an ESG sceptic: How I learned to stop worrying and love ESG June 30, 2020 For a long time, it would be fair to say I have been brutally sceptical about Environment, Social and Governance (ESG) investment. However, the Covid-19 crisis has turned ESG from a trendy investment fashion to something that matters. My scepticism began with the fact that ESG was an unbalanced concept. Too many people focus only [...]
As it puts itself up for sale, is the Co-op Bank now essentially worthless? February 14, 2017 Frances Coppola, a former banker who blogs at coppolacomment.blogspot.co.uk, says Yes. The Co-Op Bank is reaching the end of the road. Yesterday’s announcement that it is putting itself up for sale follows on from disclosure last month that it was facing a full-year loss for the third year running, and would fail to meet Prudential Regulation [...]
Don’t give up on the Union: Scots should vote with their heads, not their hearts July 3, 2014 SEVEN hundred years ago, the Scots won a glorious victory at Bannockburn. The Yes campaign says we should seize this September’s referendum to be that nation again! My heart hears the call: I am Scots first and foremost. But my head says no. Why give up on a Union that has immeasurably improved the prosperity [...]
