The GlobalCapital Podcast

Brewing a bromance between Burnham and bonds

Season 1 Episode 247

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0:00 | 52:05

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◆ How UK's likely next PM can woo the bond market 

◆ Fibre ABS coming to Europe 

◆ The rise of the corporate Kangaroo

Andy Burnham looks set to become the next UK prime minister, following the resignation of Keir Starmer on Monday. But how will the new man in 10 Downing Street get along with the bond market? One of his predecessors, Liz Truss, managed fixed income relations so badly, it cost her her job and made her term the shortest in the history of the office.

The early signs were not promising. Burnham notoriously said the country should not be "in hock" to the bond market. Perhaps a strange choice of phrase when talking about debt instruments and he has since appeared to row back from the comments, which were intepreted as a fearlessness over borrowing and spending.

So how can Burnham manage the business of government while not blowing up the Gilt market? We have some suggestions.

Meanwhile, the need for digital infrastructure growth in Europe is acute. The capital markets will be vital in funding it and now it looks like a new asset class is on the way — asset-backed securities secured on fibre optic cable networks. We investigate.

We also discuss the rise and rise of the Australian dollar bond market and how global corporations are turning to it increasingly as a source of capital. 

Now read on:

Burnham needs a cause — two would please the bond market
First European fibre securitization could arrive within 18 months
Offshore corporate borrowers leap into Aussie dollar mart

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