The GlobalCapital Podcast

Dark days ahead in corporate bonds and scares aplenty in UK markets

October 14, 2022 GlobalCapital Season 1 Episode 62
The GlobalCapital Podcast
Dark days ahead in corporate bonds and scares aplenty in UK markets
Show Notes

- Capital raising about to get tougher for companies

- Chaos reigns in Gilt market

With many corporate bond issuers in Europe heading into earnings blackout periods, fears are that once they release their results in a few weeks, the negative impact of inflation, supply chain disruption and rising rates will mean lower profits.

That in turn will make capital markets tougher places to raise money. We discuss who will be hit and what they can do to issue debt in the aftermath of bad results with overall market conditions looking grim. 

Speaking of grim markets, UK prime minister Liz Truss may have ditched another tax cut policy as well as her first chancellor in a bid to reassure the country of her leadership and bring stability to bond markets but the early signs are that she has failed again.

The Gilt market is "all over the shop", according to one trader, behaving much more like an illiquid, high risk market in distress - the opposite of what it is supposed to be.

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