Connecting British and American Yields
Thursday 05 December 2024UK gilt yields closely track US Treasury yields due to shared monetary policies and global factors, with recent political and economic developments suggesting continued correlation, particularly at longer maturities.
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Bond Buyback for Birmingham City Council
Wednesday 20 November 2024Arlingclose has successfully supported Birmingham City Council in repurchasing £73m of its 9.675% bonds due 2030, replacing them with £88m of new funding from the Public Works Loan Board at an average rate of 4.6%. The refinancing is projected to save £2.8m over five years, significantly reducing interest costs while maintaining a similar repayment profile.
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Scottish Local Authority Investment Balances
Tuesday 19 November 2024Scottish local authorities' investment balances dropped 20% to £2.4 billion over 12 months to September 2024, outpacing the UK-wide 11% decline, driven by rising expenditure, reserve use, and reduced long-term borrowing. Amid tighter liquidity and 5.5% short-term loan rates, councils face seasonal cash flow pressures but are leveraging higher rates for investment opportunities through proactive financial management.
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What are gilts and why do their yields matter for UK local authorities?
Tuesday 29 October 2024Look into UK government bonds, or gilts, including their origin, types, and market dynamics, and the inverse relationship between prices and yields. Explore the impact of gilt yields on borrowing costs for UK local authorities and see how economic and political events drive yield volatility, affecting public sector financing.
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Trump vs Harris: Implications for UK Gilts
Thursday 24 October 2024Discover how the upcoming US election could impact UK borrowing costs.
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How Do I Capitalise Interest Costs?
Tuesday 22 October 2024How capitalising interest costs can lead to significant savings for your authority, and ensure compliance with accounting policies.
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Local Authority Borrowing Option – National Wealth Fund
Wednesday 16 October 2024The UK Infrastructure Bank has become the National Wealth Fund, now operating with a broader mandate and increased capital. It remains a competitive source of finance for local authority infrastructure projects, particularly those targeting climate change and sustainability goals.
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Stay Ahead of The Curve
Thursday 10 October 2024Learn how yield curves play a crucial role in financial analysis and interest rate forecasting, offering valuable insights for smarter treasury management and decision-making in your local authority.
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Supporting Housing Associations Through Local Authority Lending Facilities
Wednesday 09 October 2024Discover how Arlingclose's tailored local authority funding solutions are empowering housing associations.
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How to Conduct Due Diligence on a Local Authority?
Friday 04 October 2024Discover the key challenges of conducting due diligence on local authorities and how expert analysis can simplify your investment decisions.
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The Benefits of Capitalising Interest Costs During the Construction of an Asset
Friday 04 October 2024Discover how capitalising interest costs during asset construction can enhance financial performance, improve asset valuation, and support long-term financial strategy for local authorities.
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Investing in ETFs (Part 3)
Thursday 03 October 2024There is a range of income-focused ETFs, from steady dividend payers to high-yield bonds, tailored to suit varying risk appetites and investment goals.
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Contractor Due Diligence
Tuesday 01 October 2024UK contractor ISG entered administration on 20th September, underscoring the ongoing risks in the construction sector and the vital importance of thorough due diligence.
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PSNCR and the Seasonality of Local Authority Borrowing
Friday 27 September 2024Discover how seasonal borrowing trends impact local authorities and learn strategies to manage year-end cash flow challenges effectively.
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Is it time to review your MRP Policy?
Wednesday 18 September 2024With significant changes on the horizon, this insight highlights immediate actions that could unlock both short and long-term financial benefits before the new MRP Guidance takes effect in April 2025.
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What is the FSCS and is My Authority Covered?
Tuesday 17 September 2024Find out if the FSCS could protect your authority's deposits and whether your investments are fully covered.
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The Rise of Company Insolvencies in England and Wales
Friday 13 September 2024Company insolvencies in England and Wales reached record levels in 2024, surpassing the 2008 financial crisis, due to inflation, rising interest rates, and post-pandemic economic pressures. This surge highlights financial strain across key sectors like retail and hospitality, leading to higher unemployment and increased financial risks.
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What Time to Email the PWLB
Monday 09 September 2024Fixed loan rates are set twice daily and are influenced by gilt yields, which fluctuate throughout the day. Borrowers should carefully monitor these yields to decide whether to borrow in the morning or afternoon, as afternoon rates may be lower. However, waiting carries the risk of overnight market changes, which could lead to higher rates the next day
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The Rise and Fall of Credit Suisse
Friday 06 September 2024Credit Suisse, once a global banking powerhouse with a huge market capitalization, collapsed in 2023 after years of scandals and mismanagement, ultimately being acquired by UBS.
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Are UK Financial Markets Safe?
Tuesday 03 September 2024The Bank of England's SWES exercise reveals that severe market stress could lead to significant liquidity needs for non-bank financial institutions, tightening conditions in the repo market, and increased pressure on corporate bond markets.
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The Management of Legacy Debt
Monday 02 September 2024Legacy debt funds in the UK were created to manage debts from abolished local councils, ensuring financial obligations are met and shared among successor authorities, despite the councils' dissolution.
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Exceptional Financial Support & Capitalisation Directions Explained
Thursday 29 August 2024What is the difference between Exceptional Financial Support & Capitalisation Directions?
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Is Your Financial Assistance Compliant?
Tuesday 13 August 2024Learn how to ensure your authority's financial assistance to local businesses aligns with market standards and avoids legal challenges.
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Are you ready if an inspector calls?
Wednesday 31 July 2024Without additional government support many authorities will struggle to make ends meet over the next few years, but those that can demonstrate good governance may have a more sympathetic response from stakeholders if an inspector ever calls. In this latest Insight David Blake explores this process and how a review of treasury management practices can help reduce and control risk.
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Supranational Bonds: A Secure and Sustainable Investment Opportunity
Wednesday 17 July 2024Amid high yields and rising ESG investing, supranational bank bonds are highly attractive. Issued by entities like the World Bank, these AAA-rated bonds offer high security, liquidity, and diversification, often yielding higher returns than sovereign debt. Despite potential risks, they provide secure, strong-return, and socially responsible investment options.
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The Ministry Formerly Known As …
Tuesday 16 July 2024The staff at DLUHC (Department for Levelling Up, Housing and Communities) will once again be ordering some new headed notepaper and changing the sign on the door on the news that the department has, on 9th July 2024, been renamed MHCLG (Ministry of Housing, Communities and Local Government).
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The Future of Public Finance: Trends and Predictions for H2 2024
Thursday 11 July 2024As we move into the second half of 2024, several emerging trends are set to shape the landscape of public finance. What are they?
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Revisiting Interest Rate Swaps
Wednesday 10 July 2024Arlingclose played a pivotal role in advising and executing a swap for a local authority in 2020, providing substantial savings.
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Have you refreshed your TMPs recently?
Wednesday 10 July 2024How up to date are your Treasury Management Practices (TMPs), an important document encapsulating your Authority’s treasury ‘principles’ and ‘schedules’?
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Best Practice for Managing Local Authority Cashflows
Tuesday 09 July 2024This insight offers practical strategies to enhance local authority cashflow management, ensuring financial stability and efficient resource allocation
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What do the MHCLG Live Tables tell us about LA Investment Balances?
Monday 08 July 2024What do the MHCLG Live Tables tell us about the latest changes in local authority investments and how they could affect treasury strategies.
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Are Banks more Creditworthy than Local Authorities?
Monday 01 July 2024Recently many financial institutions have had their credit ratings upgraded while local authorities have been downgraded. Are bank deposits becoming more attractive than inter-authority lending for LA treasurers?
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Investing in ETFs (Part 2)
Monday 24 June 2024How can ETFs provide local authorities with cost-effective and diverse investment opportunities, including ESG-focused options, to fit their investment strategies?
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The S&P Global UK PMI
Friday 21 June 2024Explore June's UK PMI: What does the latest data reveal about the UK economy.
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Income Strips Revealed
Thursday 20 June 2024Understand the pros and cons of income strips to effectively manage long-term liabilities and fund essential projects - read this insightful guide now.
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US Labour Markets: Are There Signs of Recession Ahead?
Thursday 06 June 2024The US labour market's resilience has had a significant impact on global bond markets and interest rate expectations.
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Common Pitfalls in Your Year End Accounts (and How to Avoid Them)
Wednesday 22 May 2024The end of May is a busy time for local authority accountants, with most authorities aiming to have draft accounts ready by the end of this month. So to help you on your way this year here are some common, yet usually simple to fix, problems that we see.
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Greenwashing and Credit Risk
Tuesday 21 May 2024Discover how Arlingclose's guidance can help you navigate ESG investments and mitigate the risks of greenwashing – ensuring prudent management of public funds.
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Bank of England to Overhaul Its Forecasting Approach
Tuesday 07 May 2024A major review by former Federal Reserve chairman Ben Bernanke of the Bank of England’s forecasting approach and processes highlighted significant problems and made recommendations for change.
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Is the path of UK inflation more like the US or Eurozone?
Friday 03 May 2024As UK gilt yields rise amidst a global reassessment of monetary policies, our latest analysis provides a perspective on the UK's economic position relative to the US and Eurozone.
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The FCA’s Anti-Greenwashing Rule
Monday 29 April 2024The UK's Financial Conduct Authority's new anti-greenwashing rule, effective 31st May 2024, offers clear guidelines to ensure sustainability claims are accurate, complete, and transparent, helping local authorities safeguard their ESG investments and make informed financial decisions. What should you be aware of?
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Investing in ETFs
Friday 19 April 2024With interest rates still elevated, returns from investing in cash will likely remain high in the near-term. However, we continue to believe there remains a case for long-term investing on both an income and capital growth basis, particularly when rates start to decline, and to this end we are currently investigating ETF related options that we believe may benefit our clients.
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IFRS 16 and PFI Schemes
Tuesday 09 April 2024The “new” IFRS 16 Leases accounting standard is finally upon us, with CIPFA/LASAAC confirming that there will be no further delay to implementation beyond 1st April 2024.
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What is the PRI?
Thursday 04 April 2024The Principles for Responsible Investment (PRI) is the world’s leading advocate of responsible investment. It works to support the incorporation of environmental, social, and governance factors (ESG) into investment decision-making.
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Can Local Authorities Help Fund Your Housing Association?
Tuesday 12 March 2024Arlingclose has arranged £400m of lending facilities for housing associations and we’d be pleased to discuss funding transactions or any other arrangements between housing associations and local authorities where our experience and knowledge can be applied.
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Assurance with Your Accounts
Tuesday 05 March 2024As all local authority accountants will know the upcoming few months can typically be a busy, and sometimes daunting, time. As our clients will be aware Arlingclose are here to provide assistance with some of the most difficult parts: your financial instruments and capital financing requirement calculations.
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Valuing Shares
Tuesday 27 February 2024How do you calculate the fair value of a share? Arlingclose has many years of experience in valuing a wide variety of shares owned by local authorities.
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Expected Credit Loss Calculations
Tuesday 20 February 2024Our tried and tested models enable us to form a reasoned and consistently applied judgement as to how likely a borrower is to default and what impact a default would have on expected future cash flows. We are able to calculate an ECL to stand up to audit scrutiny.
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Are UK Financial Markets Safe?
Wednesday 14 February 2024Last year the Bank announced it was launching its first system-wide exploratory scenario (SWES) exercise to help improve its understanding of how both banks and non-bank financial institutions would behave under severely stressed financial market conditions.
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Are Inflationary Pressures Building?
Thursday 01 February 2024The recent trend of below consensus UK inflation figures had raised hopes for a rapid loosening in monetary policy in 2024, but the ONS inflation data for December 2023 (published in January) made for less pleasant reading.
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Funding Electric Vehicle Fleet Conversions
Tuesday 23 January 2024As the electric vehicle market evolves, a growing number of lessors are prepared to take residual value risk on these assets. Is this an efficient way for local authorities to reduce cost and risk as they migrate towards net zero?
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Capital Flexibilities – A Call for Views
Monday 15 January 2024The government's engagement with local councils on capital resources and borrowing, as announced by the DLUHC, offers fresh perspectives on capital flexibilities and local financial management.
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Different Debt Structures
Monday 08 January 2024Understand your options: Learn how maturity, annuity, and EIP loans differ in repayment profiles and risk, offering valuable insights for effective financial management.
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The UK's Unique Local Authority
Friday 05 January 2024The City of London Corporation is the governing body for the City of London, a small area in Central London that is the traditional home of finance services in the UK.
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Triple Bottom Line Reporting
Tuesday 02 January 2024TBL reporting is a framework that goes beyond traditional financial reporting by considering three key dimensions. So what are the perceived benefits of TBL reporting?
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What are the FCA’s new Sustainability Disclosure Requirements?
Thursday 14 December 2023Following consultation, on 28th November the Financial Conduct Authority (FCA) released its long-awaited policy framework on Sustainability Disclosure Requirements (SDR) and investment labels.
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Time to Revisit Your MRP?
Thursday 30 November 2023At Arlingclose we believe, as we get into 2024/25 budget setting, there has never been a better time to review your current and future MRP policy.
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The Outlook for Green Gilts
Monday 27 November 2023Green Gilts, also referred to as Green Bonds, are a type of fixed-income financial instrument. These are issued by government bodies and specifically aim to fund projects tackling climate change, finance infrastructure investment, and create jobs across the country.
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What to expect in the Autumn Statement
Thursday 16 November 2023What to expect in the Autumn Statement
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It's Strategy Time
Tuesday 14 November 2023For a small subsection of local authority accountants (the ones that work in treasury management) now is usually the time of year when minds turn to preparing the annual treasury management and related strategies for their organisation.
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What is the UK GfK Consumer Confidence Index?
Wednesday 25 October 2023In June, we shared insights regarding the GfK Consumer Confidence Index, a monthly barometer published in the UK. Building upon that, we now delve deeper into the questions posed by the index and explore the factors that contributed to a shift in sentiment observed in October.
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Income Strips & Indexed Linked Debt
Tuesday 17 October 2023Local authorities are increasingly being presented with offers for income strip and inflation-linked debt from various institutions. The article explores why some authorities are opting to exit these agreements prematurely.
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Can I Give a Subsidy?
Thursday 12 October 2023There might be scenarios where local authorities find it advantageous to offer loans at sub-market rates to certain companies, or perhaps even extend grants. Is such financial support permissible?
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What's going on with Metro Bank?
Wednesday 11 October 2023Metro Bank launched in 2010 and has been among the most well-known of the so-called challenger banks. What has led to a rescue deal being announced?
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Why Do We Have Two-Tiered Local Government?
Tuesday 03 October 2023Many but not all parts of England have a two-tiered local government structure. Why do we have this structure?
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ESG Integration
Monday 02 October 2023In the landscape of finance, the importance of incorporating environmental, social, and governance (ESG) considerations into investment strategies has grown markedly.
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Peak Rate Uncertainty
Friday 29 September 2023After nearly two years of upward moves in bond yields and wild levels of volatility, have we achieved peak rates?
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Which UK House Price Indicator is Best?
Friday 29 September 2023Given that each House Price Index draws on different data and varies in methodology, it’s important to consider a few different HPIs.
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What is a Section 5 Report for a Local Authority?
Wednesday 27 September 2023Birmingham City Council’s City Solicitor and Monitoring Officer issued a Section 5 report last week. What is a section 5 report?
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What is the UK Money Markets Code?
Tuesday 26 September 2023Developed by the Bank of England, The UK Money Markets Code was first published in 2017 and established high level principles of appropriate standards to ensure trust exists between a diverse set of participants.
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Section 114 notices – who will be next?
Friday 22 September 2023Birmingham City Council is the largest and most high profile of the six local authorities to have issued a section 114 notice since 2018. Perhaps unsurprisingly, there is now some speculation in the national press over who will be next.
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Electric Vehicles, Salary Sacrifice, IFRS 16 and Scotland
Friday 15 September 2023Many climate-conscious employers have taken advantage of a government-backed scheme to provide their staff with electric vehicles.
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Social Impact Bonds
Thursday 14 September 2023SIBs are a form of partnership in which investors provide upfront funding for a social program where their return on investment is linked to certain predetermined performance targets.
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The Outlook for UK Commercial Property
Wednesday 13 September 2023The UK's commercial property sector is facing a significant sell-off, investors and asset managers are grappling with the complex task of valuing their portfolios in this shifting landscape.
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What does Birmingham City Council’s Section 114 Notice Mean for the Local to Local Lending Market?
Tuesday 12 September 2023The biggest local authority in the country is in financial difficulty, and so it is not unreasonable to ask how this might impact the local-to-local lending market.
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Why do Section 114 notices happen?
Friday 08 September 2023Why do Section 114 notices happen?
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Why Local Authorities Really Matter
Wednesday 06 September 2023Aside from administrative functions local authorities are also crucial for some other really important things: like how likely you are to die younger than you should.
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Why do I have a pension asset?
Wednesday 09 August 2023This year a number of local authorities have a pension asset on their balance sheet rather than a pension liability. What does this pension asset mean in practice and why has this started to occur now?
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What is the VIX?
Tuesday 08 August 2023The Cboe Volatility Index – better known by its ticker ‘VIX’, is a financial benchmark devised to act as a live market estimate of the expected volatility of the S&P 500 Index.
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Do Credit Ratings include ESG?
Friday 04 August 2023Credit ratings and ESG ratings are different products. But do ESG risks influence credit ratings and are the main rating agencies building these into their credit assessments?
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European Commission’s assessment of Money Market Funds’ resilience
Wednesday 02 August 2023The European Commission recently published its long-overdue review of Money Market Fund (MMF) regulation in Europe on the adequacy of MMF regulation from a prudential and economic point of view.
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The First Subsidy Control Regime Judgement
Tuesday 01 August 2023The Competition Appeal Tribunal has made its First Subsidy Control Regime Judgement
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How Regulators Failed to Stop Local Government Failures
Monday 24 July 2023Section 114 notices used to be a rare occurrence but a handful have been issued in the last two years and it is expected that there will be more to come.
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Parish Council Investment Advice
Thursday 20 July 2023With market volatility continuing to fluctuate and short-term interest rates rapidly rising, it may be time to reassess your bank balances and short-term investments for security, liquidity and yield.
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Arlingclose Investment Benchmarking June 2023
Tuesday 18 July 2023Another quarterly Arlingclose Investment Benchmarking has rolled around and some dramatic changes are afoot.
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UK Bank Stress Test Results
Thursday 13 July 2023The results of the latest Bank of England stress tests on UK Banks have now been published and are summarised in this insight.
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What are the new UK Subsidy Rules?
Wednesday 12 July 2023The Subsidy Control Act 2022 came into effect on 4th January 2023 replacing EU State Aid rules. This sets out the framework under which local authorities should award subsidies going forward.
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Managing LOBO Calls
Wednesday 28 June 2023As interest rates rise, an increasing number of local authority LOBO loans are being “called” by lenders. The value of options, and risk relating to these loans, must also be considered when reviewing restructuring or repayment scenarios; you can’t directly compare against a fixed rate loan.
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Reduce Risk with Secured Deposits
Tuesday 27 June 2023With a simple signup process, increased security, bail-in exemption and a higher yield to top it off, secured deposits offer a competitive option for investment when looking to shore up unsecured investment balances.
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Low Cost Funding and Interest Rate Risk Management
Tuesday 27 June 2023In April 2020 Arlingclose worked with one of its local authority clients to transact an Interest Rate Swap (Swap) which locked in a rate of 0.56% on £75million of funding for a period of 20 years.
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PWLB Reduced HRA Lending Margin
Monday 26 June 2023The PWLB has recently announced a reduction in the margin applied to loans that will be used to fund capital expenditure within the Housing Revenue Account (HRA).
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Is Engagement or Exclusion better for ESG?
Friday 23 June 2023One area that has seen lots of attention is the growth in ESG funds or the incorporation of ESG into existing funds’ strategies and the terms exclusions and engagement are often thrown around in this conversation. But is one better than the other?
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Why is inflation so persistent?
Wednesday 21 June 2023Is persistent inflation here to stay?
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Financial problems in Guizhou
Tuesday 20 June 2023Local authorities in other countries can get into financial difficulties too. It’s not just Woking, Thurrock, Slough and Croydon that have been making headlines recently. Guizhou, a region in China, has been in the press over concerns about high debt levels, a likelihood of default and the possibility of a bail-out from the central government in Beijing.
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New Secured Deposit Service
Monday 19 June 2023We are proud to announce that we have successfully supported the trading of secured deposits in collaboration with the innovative fintech Consort1, along with Clearstream, Standard Chartered Bank, NatWest, Alpha Group, and BankClarity, with Gloucestershire County Council being among the first UK local authorities to utilise the new service.
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What’s your opinion of local authority accounts?
Monday 19 June 2023A product of the audit process is for an independent assessment on the financial statements of an organisation to express an opinion on their fairness and compliance with applicable accounting principles, which is given through the auditor’s opinion.
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Active vs Passive Investing?
Thursday 15 June 2023Given the challenge presented by the last few years, are we any closer to settling the perennial active versus passive debate?
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Auditing Local Authority Accounts
Friday 09 June 2023The crisis in the audit of local authority accounts has been widely publicised with the Department for Levelling Up Housing and Communities (DLUHC) currently carrying out an inquiry into the current backlog that exists. What changes could be made?
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Accounting for Fair Value through Other Comprehensive Income
Wednesday 07 June 2023Back in April the IFRS 9 Statutory Override was extended for a further two years. Should the Government and the accounting standard setters apply FVOCI as the way to account for these instruments going forward?
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What is the Consumer Confidence Index?
Tuesday 06 June 2023The GfK Consumer Confidence indicator in the UK rose to -27 in May 2023 from -30 in April, improving for the fourth consecutive month. However, the index remained below its long-term average, suggesting that a clear majority of respondents continued to report low confidence, in line with data pointing to falling UK retail sales.
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How to Implement IFRS 16?
Tuesday 30 May 2023IFRS 16 – Just as you thought it was safe to have a holiday!
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What do rising construction costs mean for local authorities?
Friday 26 May 2023The last year has seen one of the highest periods of construction price inflation on record.
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What is the Outlook for UK Public Finances?
Thursday 25 May 2023Borrowing reached its highest point in March 2021 before it began to ease over the remainder of the year and through 2022 into 2023. However, recent months have seen this begin to worsen once again as the government is forced to borrow to support energy prices amid the cost-of-living crisis.
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Should You Dollar Cost Average?
Wednesday 24 May 2023Dollar cost averaging is not a strategy for deciding what to invest in; rather, it can help you take the stress out of deciding when to invest. Using it as part of a comprehensive financial plan that includes a diversified mix of asset classes can help track, plan, and reduce risk regardless of what's happening in the market.
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Is ESG Over?
Wednesday 17 May 2023ESG investing is moving from an early phase into something more sophisticated where investors will be challenged to really interrogate what they believe, rather than undertaking a tick box exercise.
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An Updated History of Base Rate
Tuesday 16 May 2023Can we expect a return of the sky-high-rates of the 1980s, or a more placid range of about 2% - 6% for the foreseeable future?
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Slower money growth, slower inflation?
Monday 15 May 2023What does easing money growth mean for inflation.
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Why does the US debt ceiling matter?
Friday 12 May 2023Over the past few years, we've become accustomed to hearing about the political tussles around the US debt ceiling, and the stand-off and brinkmanship to raise its level.
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Are UK Banks Safe?
Wednesday 10 May 2023It’s clear the banking system has been strained in recent weeks, particularly in the US. Can we bank on the banks? (Part 4)
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What is the IMF's Outlook for UK Interest Rates?
Friday 14 April 2023IMF suggests a likely return of real interest rates to pre-pandemic levels.
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iDealTrade 10 Best Features - Trade Differently
Tuesday 11 April 2023Need to free-up more time in your day? Perhaps it’s time you made the switch to online trading for your “local to local” transactions. iDealTrade is an online, automated, matching platform for local authority deposits and loans.
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Lessons from 30 Years of Attempting to Devolve Power in the UK
Tuesday 04 April 2023A report by the Institute for Government looks at the lessons from 30 years of attempting to devolve power in the UK. It raises some interesting themes and tries to find some practical solutions to this perennial problem.
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Impact Investing
Tuesday 28 March 2023Impact investments are those with strategies that aim to generate both, financial returns and positive, measurable societal or environmental impact.
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How recently have you reviewed your TMPs?
Thursday 23 March 2023When did you last review your Treasury Management Practices (TMP) document? You may be aware - or even surprised – that it has been a while since you last did so.
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Housing Association Funding Arrangements
Wednesday 15 March 2023Arlingclose secures £400m for housing associations, with flexible solutions tailored to meet unique needs. Discover how we can alleviate your funding challenges, while making a positive impact on society.
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What Happened to Silicon Valley Bank?
Monday 13 March 2023Silicon Valley Bank, a specialist US lender to the tech sector, has slumped from being a highly regarded and rated bank to financial failure within a week.
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Fair Weather Localism
Tuesday 28 February 2023What are the typical arguments for localism and what needs to be considered?
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Back to Basics: Covered Bonds
Monday 27 February 2023The relative safety and stability of covered bonds compared to other types of bonds may make them an attractive option for investors seeking a relatively safe investment.
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Help with Your Year End Accounts
Thursday 16 February 2023Arlingclose can provide bespoke assistance where needed with individual aspects of your accounts. Our services includes ECL and Fair Value Calculations, Accounts Assurance, support with preparation, in depth assistance with soft loan accounting, lease accounting, debt restructuring or other notoriously tricky areas.
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The IMF World Economic Outlook
Thursday 02 February 2023Can the IMF World Economic Outlook Report really be trusted?
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Tipping Point?
Wednesday 01 February 2023Like a stereotypical romcom, the global economy appears to be in a will it, won’t it phase. Rather than being romantic entanglement, the subject of this particular situation is, of course, recession.
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Cold Weather - Warm Returns?
Friday 06 January 2023As we leave the Christmas period behind us and start the new year, it seems like a good time to reflect on the phenomenon commonly known as the “Santa Claus Rally” and “January Effect”.
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When Pubs Replaced Banks
Wednesday 04 January 2023What happened when pubs replaced banks in Ireland in the 1970's
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The Bonds are Back in Town
Thursday 22 December 2022The historically low interest rates of the last decade have kept many investors out of the fixed income markets. However, in recent months we have seen consecutive interest rate hikes meaning that bond yields are becoming more attractive to investors once again.
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Inflation - Written in the Mars?
Wednesday 21 December 2022An inflation index is a tool used to measure price changes over time in an economy, but what can a Mars Bar tell us?
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The (Asset) Class of 2022
Tuesday 20 December 2022A summary of asset class performances in the year 2022.
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What to Call the PWLB
Wednesday 07 December 2022What is the history of the PWLB lending facility?
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Counterparty Goals
Tuesday 06 December 2022World Cup controversies have raised questions for some treasurers. Arlingclose’s counterparty service has always considered more than just credit ratings.
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Does Scotland get a Raw Deal on Debt Refinancing?
Wednesday 23 November 2022Over recent years Arlingclose has worked with many authorities on debt refinancing transactions, often involving a premature repayment premium, but resulting in beneficial savings and risk reduction. However, we’ve seen limited activity in Scotland due to the different rules on accounting for premiums.
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Service Concession Flexibility
Tuesday 22 November 2022The Scottish Government has introduced flexible accounting arrangements for local authorities that are the grantor in service concession arrangements, including private finance initiative and similar schemes.
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Pre-paying Debt to the PWLB
Thursday 10 November 2022Pre-paying debt to the PWLB could lead to savings, if done correctly
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FCA Proposes Rules for Sustainable Funds to Tackle Greenwashing
Wednesday 09 November 2022The Financial Conduct Authority (FCA) has launched a consultation on proposed measures to clamp down on “greenwashing” of investment funds and products.
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The Bankruptcy of Detroit: Part 3
Tuesday 08 November 2022In the final part of our series we ask why it almost certainly wouldn't happen here?
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The Bankruptcy of Detroit: Part 2
Tuesday 01 November 2022In the second of a three part series we ask how can a whole city go bankrupt?
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The Bankruptcy of Detroit: Part 1
Tuesday 25 October 2022Put Your Hands Up for Detroit. In the first of a three part series we look at the USA’s largest ever municipal bankruptcy.
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PWLB Certainty Rate Has Changed a Lot
Thursday 13 October 2022PWLB Rates have increased, but the scale and speed of the increase has shocked most borrowers
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The Customer is Always Right
Tuesday 27 September 2022The Government’s customer when it comes to financing is the capital markets. We’re currently witnessing a rather significant rerating of the customer’s expectations with regard to the price of the product on offer.
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A Change in Policy
Wednesday 21 September 2022Are rate hikes necessary to tame inflation or are monetary policymakers getting carried away?
Read moreCracking the Code(s of Practice)
Tuesday 20 September 2022Local Authorities will soon be updating their strategy documentation which will need to reflect changes in the CIPFA Prudential and TM Codes
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How Do ESG Strategies Differ?
Tuesday 13 September 2022ESG investment policies, strategies and approaches aren’t one-size-fits-all.
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Funding in a Volatile Market – A Case Study and 10 Top Tips
Tuesday 13 September 2022How do successful treasury managers navigate current rate volatility and mitigate rising interest costs? In this insight we set out how we have helped one of our London Borough clients achieve a low-cost debt portfolio.
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Multi-Asset Investing and Inflation
Thursday 08 September 2022The ability of multi-asset funds to actively invest across asset classes may offer some help by the fund manager being able to seek out and, hopefully, take advantage of opportunities where those assets can provide a degree of protection and therefore take less of a hit to those all-important returns.
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Big Brother is Watching You
Wednesday 07 September 2022The PWLB is here to stay but the scrutiny it now places on applications for funding has increased. Failure to comply will trigger a number of sanctions which are costly and best avoided.
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How long will gilt shocks continue?
Tuesday 06 September 2022Is credibility in gilt markets eroding?
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Placing your Truss in the Bank of England
Tuesday 06 September 2022Economic Policies under Truss
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Are Banks Prepared for Climate Change?
Tuesday 23 August 2022The Bank of England tested the UK’s largest banks and insurers on how prepared they are for financial risks caused by climate change.
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Local Authority Creditworthiness
Monday 15 August 2022Why carry out analysis on local authorities, is it worth the time and effort?
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The Glorious 31st
Thursday 11 August 2022If you want to understand your local authority’s financial position which bits of the accounts should you focus on?
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Derive Some Benefits
Thursday 11 August 2022Derivatives don’t appear in many local authority portfolios. Used properly, they are excellent risk management tools, but they can be unfamiliar and a little more complicated. Nonetheless, some local authorities are taking advantage of derivatives indirectly through investments in certain pooled funds.
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A Guarantee of Success?
Tuesday 09 August 2022Some authorities have looked at ways of undertaking planned projects whilst complying with the new rules, and one way of doing this is by obtaining third party loans for their subsidiaries, rather than lending the companies the money themselves.
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Taxing Borrowing?
Thursday 28 July 2022They say everything comes back into fashion and this seems to be the case in terms of the control of local authority capital spend.
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A Roundup of Public Finance Live 2022
Friday 15 July 2022After a long two years of few ‘in real life’ meetings, the Arlingclose team were keen to get in front of clients and non-clients alike, at Public Finance Live 2022.
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Political Turmoil, Relief and Gilt Yields
Tuesday 12 July 2022Political Turmoil, Relief and Gilt Yields
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FCA moves to widen regulatory remit to ESG Data and Rating Providers
Monday 11 July 2022FCA moves to widen regulatory remit to ESG Data and Rating Providers
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The penny drops, but will it be sustained?
Tuesday 05 July 2022The penny drops, but will it be sustained?
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Interest Rate Uncertainty and the MPC’s New Member
Friday 01 July 2022Interest Rate Uncertainty and the MPC’s New Member
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Regulators Get Tough on Greenwashing
Thursday 30 June 2022Regulators are stepping up their scrutiny over sustainability claims.
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Arlingclose advises on LOBO refinancing for Braintree District Council
Tuesday 21 June 2022Braintree District Council (BDC) has recently completed prepayment of its LOBO loans. The existing debt, running at an average interest rate of 4.7% over 40 years, was replaced using a combination of new funding and existing cash resources.
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Can we bank on the banks? Part 3.
Tuesday 21 June 2022Earlier this month the Bank of England published its first resolvability assessment of major UK banks. The report is part of its Resolvability Assessment Framework which the Bank, as the resolution authority, undertakes to evaluate whether banks can fail in an orderly way.
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Minimum Revenue Provision on Capital Loans
Monday 20 June 2022DLUHC has issued an interim response to its November consultation on MRP.
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What are Credit Default Swaps?
Monday 13 June 2022Analysing and assessing the financial strength of an institution, be it a bank, a corporate or a sovereign, requires more than just relying on credit ratings. For some time now Credit Default Swaps (CDS) have been used as an additional indicator of risk alongside other measures.
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Arlingclose advises on £73m medium term loan facilities for Optivo Housing Association
Monday 30 May 2022Arlingclose is delighted to have arranged a £73m revolving credit facility for the London-based housing association Optivo, funded by UK local authorities.
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Green Bonds and Sustainability-Linked Bonds – What’s the Distinction?
Friday 27 May 2022Whether the bond is issued as ‘green’ or ‘sustainability-linked’, the servicing of debt, both coupon payment and principal repayment, remains the responsibility of the issuing entity and thorough credit analysis should not be overlooked.
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Local Authority Counterparty Risk
Friday 20 May 2022The last couple of weeks have been a reminder that, when looking at counterparty and credit risk, the UK’s 500 local authorities are not all the same.
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Potential MMF Regulatory Reform – where are we now?
Monday 16 May 2022A regulatory review is due and we noted last year that further rule changes could be on the horizon, driven by the market stresses experienced in March 2020 with the onset of the Covid-19 pandemic.
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Great (Capital Market) Expectations
Tuesday 03 May 2022Past performance is not a reliable indicator of future returns, or so goes the ubiquitous statement on much investment-related material. Despite this, past performance is often (always?) used by many investors as at least a general guide to what the future may bring.
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The only way is up?
Friday 22 April 2022There is no doubt about it, bond yields are under significant pressure. They have relentlessly marched higher, driven by both inflation and monetary policy concerns. So, what has changed? The inflation outlook has been known for some time, so why are yields continuing to price in ever higher premiums?
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iDealTrade - Trading on your Terms
Thursday 07 April 2022One of the key advantages of iDealTrade is that it allows you to be a market maker when you have specific requirements for your funding. A District Council's recent success highlights this.
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Fix Now, Loan Later
Wednesday 06 April 2022Notable savings have been achieved through forward starting loans with private lenders
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MRP – Is it time to review what you do?
Monday 14 March 2022The recent consultation to changes in the Minimum Revenue Provision regime in England has now closed and has prompted criticism of some of the more extreme approaches taken by local authorities in terms of MRP policy.
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Cryptocurrency Due Diligence
Wednesday 09 March 2022The cryptocurrency market is now hard to ignore. Cryptoassets like Bitcoin have been growing in popularity in the last decade, becoming increasingly mainstream.
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There’s Still a Pandemic and it’s Financial Year End Again…
Monday 31 January 2022Arlingclose is able to provide assistance in the preparation of year end accounts.
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Back to the Old School
Monday 24 January 2022At Arlingclose we are constantly striving to bring added value services to our clients and to do them as efficiently and effectively as possible.
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What is an LEI Number?
Wednesday 19 January 2022An LEI number is a ‘Legal Entity Identifier’ that has been required since 3rd January 2018 for any legal entities (excluding individuals) that buy or sell exchanged traded financial instruments.
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The ESG ratings challenge
Wednesday 22 December 2021What should investors relying on ESG ratings or data and wishing to better understand the inherent long-term risks and opportunities in their investments bear in mind?
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LOBOs: The Secrets of Successful Refinancing
Monday 13 December 2021The past few years have seen a resurgence in debt refinancing as authorities look for ways to make savings and run a more efficient debt portfolio in line with their projected borrowing requirement
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A Local Taxation Tale of Two Cities
Friday 10 December 2021If you want more localism you have to pay for it
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QE goes green
Thursday 09 December 2021The Bank of England is ‘greening’ its corporate bond purchases to support the transition to net zero
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Arlingclose advise on £65m LOBO refinancing for Liverpool City Council
Wednesday 01 December 2021Liverpool City Council (LCC) has successfully arranged the refinancing of £65m of Lender’s Option Borrower’s Option (LOBO) debt.
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Can it Pay to be Passive?
Friday 26 November 2021The debate about whether, on average, active managers offer value for money in terms of generating outperformance, or ‘alpha’, continues and most definitely shows no signs of stopping.
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Arlingclose advise Suffolk County Council on LOBO Refinancing
Tuesday 23 November 2021As Suffolk County Council closes the deal on their LOBO refinancing, David Blake examines the advantages of these transactions.
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Setting rates in the 'local to local' lending market
Tuesday 16 November 2021In this note we explore price transparency, supply and demand dynamics and the benefits of screen-based trading.
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Carbon and Climate Statement
Thursday 11 November 2021As COP26 comes to an end in Glasgow we hope progress will be made in the fight against climate change. At this point Arlingclose is pleased to announce that we have in our own way made a transition to net zero.
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Financial Investments - a case of mistaken identity?
Wednesday 27 October 2021David Blake, director at Arlingclose, writes for room151 on the draft prudential code. Financial Investments get a rough ride in the draft Prudential Code, which appears to suggest local authorities should target zero cash balances, here he sets out why strategic investment should retain their place as part of prudent treasury management strategy.
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COP26 - Cutting through the thicket of terms and acronyms
Wednesday 27 October 2021Postponed from last year, COP26 under the UK’s presidency will commence in Glasgow on 1st November 2021 with a world leaders’ summit and end on 12th November.
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The Liability Benchmark
Thursday 21 October 2021One of the key changes to the Treasury Management Code will be the requirement for local authorities to prepare a Liability Benchmark, something we at Arlingclose have been preparing for our clients for over a decade.
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Proportionality is hardly new...
Thursday 14 October 2021CIPFA’s new Prudential Code will include proportionality as a key objective for the first time. But for treasury managers, proportionality has always been a key principle for their roles.
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Borrowing Strategy takes Centre Stage in Code Updates
Tuesday 05 October 2021With summer drawing to a close, minds turn toward the remaining months of 2021 and what lies ahead. Some may already be thinking of December’s festivities, but it will also be a month of particular interest to local authority treasurers, as it’s expected to bring the publication by CIPFA of revisions to the Prudential Code for Capital Finance and the Treasury Management Code of Practice.
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The UK’s Inaugural Green Gilt Issue
Friday 24 September 2021The UK government issued the first "Green Gilt" this week, a step in the right direction to achieve net zero by 2050.
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Why the Government’s Covid Debt Burden is Not Actually that Bad
Friday 17 September 2021Other than the obvious worry of death and disease one of the main things concerning everyone throughout the pandemic has been the effect on the economy.
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Beware the Perils of Greenwashing
Wednesday 01 September 2021Greenwashing is a compound word coined from ‘green sheen’ and ‘white washing’ describing the making of unsubstantiated or misleading claims about environmental benefits.
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PFI Projects & LIBOR Transition
Tuesday 10 August 2021With the replacement of LIBOR rapidly approaching, David Blake examines how this may affect Private Finance Initiatives which reference the benchmark.
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The Five Case Model - A Template for Local Authorities' Project Business Cases?
Thursday 05 August 2021The G20 Five Case Model impact on Public Sector project decision making
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KYLAC: Know Your Local Authority Counterparty
Tuesday 03 August 2021While a section 114 notice is a clear indication of financial distress, the existence of this procedure underlines the strength of the local government financial framework.
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All about that base?
Thursday 29 July 2021Average earnings growth is soaring – but needs to be interpreted with caution.
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Can’t Get the Staff
Wednesday 21 July 2021One of the fears at the beginning of the pandemic was that of mass unemployment as businesses across the country were forced to close their doors. Now as the economy reopens all we are hearing is a clamour from businesses saying that they can’t find enough staff. What has caused this about-turn in circumstances?
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Can we bank on the banks? Part 2.
Monday 19 July 2021Following being hit with a £91m fine, Lloyds Bank has helped bring how banks treat their customers into the credit mix.
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Managing Credit Risk
Wednesday 07 July 2021The huge shocks to financial markets over the last year have highlighted the importance of a robust credit analysis process and can create a good opportunity to consider how these processes can be improved.
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Local Authorities and ESG – a Match Made in Heaven?
Monday 05 July 2021Government borrowing statistics for March 2021 showed that local authorities have lent over £14bn to their peers, raising an interesting question, how “ESG” is a local authority?
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Parish Councils: Borrowing for Capital Purposes
Friday 02 July 2021For more information on parish and town council borrowing advice, please contact the Arlingclose team.
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The UK Infrastructure Bank
Monday 28 June 2021The UK Infrastructure Bank (UKIB), headquartered in Leeds, opened to UK businesses this month.
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Income Strips Explained
Thursday 10 June 2021A second chance to listen to the next instalment of the #TrendingTreasury series with M&G
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Parish Councils: Long-term Investing
Wednesday 09 June 2021Find out how Arlingclose can assist Parish and Town Councils with investment advice.
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Welsh Local Authorities to Get the General Power of Competence
Thursday 03 June 2021So, what exactly is the general power of competence and what will it mean for these local authorities?
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Market Monetary Policy Jitters
Wednesday 02 June 2021There’s no doubt about it, there’s a jittery mood in financial markets, causing flip flopping behaviour in equities, bonds, commodities and even Bitcoin.
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Sustainability-Linked Bonds
Tuesday 25 May 2021A German bank shows the way. The innovative deal has set a high bar for meaningful ESG targets and approaches to sustainability.
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More MMF rule changes on the way?
Tuesday 25 May 2021Regulators are looking to update MMF rules once again.
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Parish Councils: are your deposits protected?
Monday 17 May 2021For more information on how to protect your investment portfolio, please contact the Arlingclose team.
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PWLB Alternatives Webcast
Friday 30 April 2021A second chance to listen to the next instalment of the #TrendingTreasury series
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Which REITs should Local Authorities Invest in?
Thursday 29 April 2021How Local Authorities Should be Investing in REITs
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To Benchmark, Or Not To Benchmark?
Monday 26 April 2021How should you assess the relative performance of your investment portfolio?
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The Different Types of Money Market Funds
Friday 23 April 2021LVNAV, VNAV, CNAV? A refresher of the differences
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Year-End Local Authority Borrowing
Monday 19 April 2021March is traditionally a bumper month for local authority borrowing, as cash runs out and spending increases during the last quarter. The pandemic and the changes to the PWLB margins prompted a very different March 2021.
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Liability Benchmarking
Friday 16 April 2021Over the last two years Arlingclose has been able to put together all of the liability benchmarks for our clients.
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Sustainable Finance Disclosures Regulation (SFDR)
Wednesday 31 March 2021SFDR - a key pillar of the European Union's ESG initiatives and yet another acronym inhabiting this space
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The Outlook for Commercial Property Webcast
Monday 29 March 2021A second chance to listen to the next instalment of the #TrendingTreasury series
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Support Underpins Local Authority Credit Quality
Monday 29 March 2021Recent “capitalisation directions” provide further evidence of central government support for local authorities.
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Capitalisation Direction
Tuesday 23 March 2021The recent news on the capitalisation direction issued to Nottingham City Council brings the tally of directions granted to local authorities at just under £150million with more set to be announced over the coming weeks.
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Greensill Bank Collapse
Monday 22 March 2021A cautionary tale for local authorities as German local authorities may face significant investment losses
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LOBO Judgement Calls
Tuesday 16 March 2021A couple of weeks ago another chapter of the long-running LOBO saga seemingly came to an end.
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What are the Alternatives?
Friday 12 March 2021The range of so-called ‘alternative’ asset classes is wide, from funds using diverse strategies outside of the more traditional approaches along style, size, or geographical lines, to investing in art or wine, or using private equity and hedge funds.
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Scratching Your Head Over Year End?
Monday 01 March 2021Find out how Arlingclose can assist you at this financial year end
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Housing Revenue Account
Friday 26 February 2021Everything comes back into fashion - The re-emergence of the HRA
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Counterparty Due Diligence
Friday 19 February 2021This insight highlights the importance of performing detailed due diligence and also takes a look at what is happening with State Aid now that the UK has formally withdrawn from the EU
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Goals for the World
Tuesday 16 February 2021What are the United Nations’ Sustainable Development Goals (SDGs) and why are investors thinking about them?
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How to predict Bank Rate
Friday 12 February 2021Using market forward curves isn't a substitute for a good forecast
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Revision to the Prudential Code – A method of Capital Control?
Monday 08 February 2021Last week CIPFA published consultation on its latest proposed changes which would see the sixth amendment since the introduction of the Code back in 2004
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Investment Benchmarking
Thursday 21 January 2021Take a deeper look into our quarterly investment benchmarking.
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What Chance Inflation?
Wednesday 20 January 2021Global inflation expectations have risen since the turn of the year, driven by a culmination of factors, on both the demand and supply sides.
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An Independent Review of the Local Government Finance Settlement
Friday 15 January 2021The Institute for Fiscal Studies (IFS) were hard at work in the run to Christmas and published an independent assessment of the latest Local Government Finance Settlement in England on 21st December.
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Free Revenue Saving Assessment!
Tuesday 05 January 2021On the hunt for revenue savings? Over the past few months Arlingclose has worked with several authorities, helping them unlock multi-million-pound savings.
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Stewardship – Investors Can Set the Course
Tuesday 05 January 2021Stewardship is a powerful tool investors have at their disposal to encourage the listed entities they are invested in to develop more sustainable business practices and deliver substantial real change which also benefits stakeholders and wider society.
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PWLB Guidance: Navigating the New Rules
Tuesday 05 January 2021Following the introduction of HM Treasury’s PWLB Guidance, incorporating restrictions on access and a revised process, borrowing from the PWLB may now be more complicated. Arlingclose provide an overview of some of the key considerations.
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Ways to Help Alleviate Your Covid-19 Budgetary Woes
Monday 04 January 2021This article suggests some of the less painful steps local authorities can take towards closing the budget gap.
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Greenwashing - do your investments have brown undertones?
Friday 18 December 2020Your investments may seem to tick all the right ESG boxes, but have you fallen into the trap of "greenwashing"?
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Stressed about Climate Change?
Tuesday 15 December 2020Next year the Bank of England will become the first central bank to carry out detailed climate stress testing
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6 reasons why Electronic Trading is here to stay
Monday 07 December 2020Electronic trading has been around for many years it has grown in popularity during a year that has been gripped by a pandemic.
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PWLB Policy - Finding Strength in Adversity
Monday 30 November 2020Last week we saw the implementation of HM Treasury’s long-anticipated consultation response, but what lessons have been learnt from a year in the wilderness?
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The Economics of Lurking at Home
Friday 27 November 2020What are the impacts of the increase in remote working?
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Allocations are Forever
Thursday 26 November 2020The strategic asset allocation decision is a key one in the investment process
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Statutory Overrides
Tuesday 24 November 2020Local government benefits from several statutory overrides
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High mortgage rates in a low interest rate environment
Monday 16 November 2020Why are we seeing a continual rise in mortgage rates despite the Bank of England’s efforts to keep underlying rates low?
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The vaccine has landed: All is well
Thursday 12 November 2020The possibility of a vaccine is a real cause for optimism, but how much has it changed the outlook for the economy?
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Layering your Investments
Tuesday 10 November 2020Investment portfolios are like onions. How? They both have layers!
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From 'V' to 'W'
Friday 06 November 2020What is the projected path for UK economic recovery?
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US Election Day
Tuesday 03 November 2020With 538 electoral college votes for grabs from 50 states (plus The District of Columbia), the electoral system might be slightly confusing, but what is at stake isn’t; like it or not the winner will set the agenda of the entire world for the next four years.
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Low Risk But Not Risk Free
Friday 30 October 2020Money Market Funds are a very low risk investment option due to their liquidity and diversification but with market volatility rising and yields falling investors should not become complacent.
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What is SONIA?
Monday 26 October 2020LIBOR looks set to disappear and new investment, borrowing and hedging products, such as interest rate swaps, are already being based on SONIA, so a good understanding of the rate is necessary.
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Local Authority Derivatives – Regulatory Framework
Thursday 22 October 2020A recent local authority interest rate swap transaction, developed by Arlingclose and believed to be the first of its kind in over thirty years, has reignited the debate around power to use derivatives. In this note we set out the legal and regulatory background to local authority use of derivatives.
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Quantum of Tolerance
Thursday 22 October 2020Assessing risk tolerance is no easy task and requires a variety of both objective and subjective judgements.
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The Future of the High Street?
Thursday 15 October 2020This topic was spoken about long before COVID-19 reared its ugly head, but with lockdowns still in place across the globe, this question is more pertinent than ever
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Negotiating PFI, PPP, JV and Outsourced Service Delivery Arrangements
Wednesday 14 October 2020Increasingly, Arlingclose is being asked to provide advice on local authority contracts including Private Finance Initiatives, other forms of Public Private Partnerships and Joint Ventures and outsourced services.
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Interest Rate Risk Management Using Swaps
Thursday 08 October 2020Local authorities which fund their borrowing requirements from either internal borrowing or short-term variable rate borrowing from other local authorities are exposed to the risk of interest rates rising. A swap is one way of managing this risk.
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Security in a Negative Rate Environment
Wednesday 07 October 2020When interest rates are negative, and you withdraw your cash with interest deducted, have you broken the golden rule of keeping your investment secure?
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A History of Base Rate
Friday 02 October 2020Base Rate is older than you might think and started when the Bank of England was granted a Royal Charter by King William and Queen Mary in 1694.
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REITs in a Local Authority Investment Portfolio
Thursday 01 October 2020Are Real Estate Investment Trusts (REITs) a good investment for local authorities?
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Brexit: Where are we now?
Tuesday 29 September 2020Four years, three prime ministers and one pandemic later, we approach the finish line for Brexit negotiations. What are the issues preventing a trade agreement from being reached?
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Revolving Credit Facilities
Friday 25 September 2020An introduction to Revolving Credit Facilities: how can local authorities use them and why is it a good time to start thinking about them.
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Income Strips
Tuesday 22 September 2020Income Strip transactions could be just one of the options available in a brave new world of local authority capital funding.
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Negative Expectations
Friday 18 September 2020Expectations for negative rates, apparently kicked into the long grass by the Bank of England as recently as the August Monetary Policy Report, have received a boost following the publication of the minutes of the September MPC meeting.
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Is your Working Capital, Working for you?
Friday 18 September 2020Working capital can no longer be the forgotten element of treasury planning
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The Return is not Enough
Monday 14 September 2020Risk should also be involved in any decision-making.
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What happened to Carillion?
Friday 11 September 2020What led to their demise and were the warning signs there?
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Pass the PWLB
Monday 07 September 2020Allowing local authorities to transfer PWLB loans between each other could dramatically increase flexibility in debt management, reduce risk and deliver substantial savings. In this Insight Arlingclose examine how this could work.
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Strategic Fund Allocations and Managing Risk
Wednesday 02 September 2020How do you minimise risk when investing in Strategic Pooled Funds?
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The Capital Financing Requirement (CFR)
Tuesday 01 September 2020The CFR measures a vital component of an authority’s capital strategy, the amount of capital spending that has not yet been financed by capital receipts, capital grants or contributions from revenue income.
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Give us a Waive
Tuesday 25 August 2020Sterling yields are heading towards zero – and perhaps MMF fees are too
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Managing Optimum Cash Balances
Monday 24 August 2020Liquidity is a key requirement of an effective treasury operation but is holding excessive liquidity an expensive luxury in the current interest rate environment? Are there ways in which the optimum cash balance can be calculated?
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Are you holding too much cash?
Friday 21 August 2020The elephant in the room is the likelihood of more widespread negative interest rates
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Capitalising on your Capital Strategy
Thursday 20 August 2020Arlingclose have provided our clients with a template to form the basis for their capital strategy
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Accounting for Negative Interest Income
Wednesday 19 August 2020Corporate finance managers should be thinking now about the accounting implications, ready for when the time comes.
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Surprised?
Monday 17 August 2020After a number of positive data releases outperformed expectations, is it possible that economists' forecasts are too pessimistic?
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The Usable Capital Receipts Reserve
Thursday 13 August 2020As Statements of Accounts are being produced is there an opportunity to review the balance sheet and make sure we are making the best use of resources?
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iDealTrade - a Local Authority Dealing Platform
Tuesday 11 August 2020Find out more about what makes iDealTrade an easy, reliable and secure trading solution.
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Can we still bank on the banks?
Wednesday 05 August 2020Should depositors be any more concerned compared to a few months ago?
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Commercial Property Investment Update
Tuesday 04 August 2020Can a local authority with a small and concentrated exposure to commercial property deal with the impact of non-payment or reduction in rental levels?
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A New National Infrastructure Bank?
Friday 31 July 2020With the UK set to lose access to European Investment Bank finance, could we see a new independent infrastructure institution?
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Time to do something different on debt?
Tuesday 28 July 2020HM Treasury’s consultation on the Public Works Loan Board (PWLB) “Future Lending Terms” closes at the end of July. While we wait to find out about new rules, rates and availability, an expanding band of borrowers are asking themselves - is it time to do something different on debt?
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Section 114
Monday 27 July 2020What is Section 114 and why is it more relevant during the Covid-19 pandemic?
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Demography is Destiny
Friday 24 July 2020What does a future world look like where population shrinks rather than grows?
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Investment Benchmarking; what does it tell us?
Thursday 23 July 2020Arlingclose' quarterly investment benchmarking under the microscope
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Am IBORing you?
Monday 20 July 2020The Countdown to 2021: What’s happening with LIBOR transition?
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How Creditworthy is your Leisure Provider?
Tuesday 14 July 2020Councils are often forced to step in with short term finance to ensure continuity of service.
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The Importance of Financial Support and the Necessity of Due Diligence
Friday 10 July 2020Arlingclose has a successful track record of performing due diligence on a variety of commercial enterprises, from housing associations to retailers to property developers.
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Getting the Balance Right
Monday 06 July 2020Is it now time to consider future borrowing relating to the two funds under two separate borrowing strategies?
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Happy Bobby Bonilla Day!
Wednesday 01 July 2020This story teaches us the risk of having certain outgoings paid for by uncertain income
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Potential Sunburn for Commercial Property
Monday 29 June 2020A CVA is a process which allows an insolvent company to pay creditors over a fixed period.
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Are We Approaching the End of QE in the UK?
Thursday 25 June 2020Are we approaching the end of QE?
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Can it be Capitalised?
Friday 19 June 2020Are you making a significant charge to Revenue when it could be Capitalised?
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Arlingclose digs deep… and plants a tree.
Wednesday 17 June 2020Read the steps that we have taken in becoming carbon negative.
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Return of reason or temporary hiatus?
Friday 12 June 2020Had investors simply got ahead of themselves or is there more to the rise than meets the eye?
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PWLB Future Lending Terms – The Sooner the Better?
Friday 05 June 2020Over the past twelve months, forecasting PWLB rates has become much more complicated.
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Banks are safer than in 2008 – but safer for who?
Friday 29 May 2020The UK banking sector has undergone significant structural changes since the global financial crisis of 2007-09. So if coronavirus has a similar impact on banks, how different will the impact be?
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Responsible Investment – ESG Engagement
Thursday 28 May 2020Engagement is a popular approach to responsible investment
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What is Dividend Yield?
Friday 22 May 2020Does a stock with a high dividend yield automatically make a great investment?
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Value Investing in the Time of Coronavirus Webinar
Thursday 21 May 2020Arlingclose hosted Schroders’ Ben Arnold, CFA to discuss how value investing strategies are holding up during the pandemic.
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Code Commitments
Tuesday 19 May 2020Ensuring councils continue to operate within the Money Markets Code.
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The Last Time Things Were This Bad
Thursday 14 May 2020This article looks at what happened in a very different and very long ago economic crisis.
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How Slow Can You Go?
Thursday 14 May 2020How slow are credit rating agencies at updating ratings?
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Managing Borrowing and Investment in UK Local Authorities
Thursday 14 May 2020External Insight
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Coronavirus and Commercial Property Webinar
Tuesday 12 May 2020Coronavirus and Commercial Property
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Credit cards getting locked-down?
Wednesday 06 May 2020What do consumer credit data tell us about the impact of the lockdown?
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The Fiscal Cost of Tackling Coronavirus
Friday 24 April 2020Some startling but perhaps not unexpected numbers have been bandied about over the last couple of days.
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Risky Business
Wednesday 22 April 2020Using sustainable hedging strategies to minimise interest rate risk.
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How low can we go, and how fast will we get there?
Tuesday 07 April 2020Consumer confidence has plunged, read Arlingclose' take on the latest economic releases
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Are you Missing Out on MRP Savings?
Thursday 23 January 2020Minimum Revenue Provision (or Loans Fund Repayments in Scotland) is the local authority equivalent of depreciation.
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After Mark Carney; who could be next?
Wednesday 11 September 2019Who is going to replace Mark Carney in January 2020?
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IFRS 9 and Other Common Year End Problems
Friday 19 July 2019IFRS 9 and Other Common Year End Problems
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Negative yield curves and the outlook for UK monetary policy
Friday 21 June 2019Negative Yield Curves
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Summer Loanin’: When's the best date to deal?
Wednesday 05 June 2019Summer Loanin’: When is the best date to deal?
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Monitoring Risk in Local Government Finance
Friday 05 April 2019Financial Strength Ratings
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Interest Rates – How Low Can They Go?
Thursday 28 March 2019Interest Rates – How Low Can They Go?
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Investment Property: a calculated risk?
Monday 04 February 2019Investment Property Analysis
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HRA Debt Cap. Is it the answer to the housing crisis?
Friday 12 October 2018HRA Debt Cap. Is it the answer to the housing crisis?
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The new stars in the Bank of England’s Inflation Report
Monday 20 August 2018The new stars in the Bank of England’s Inflation Report
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Are You Capital Rich but Revenue Poor?
Tuesday 01 May 2018Are You Capital Rich but Revenue Poor?
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Minimum Revenue Provision - Revised Guidance
Tuesday 27 March 2018Minimum Revenue Provision - Revised Guidance
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iDealTrade - February 2018 Review
Wednesday 07 March 2018IDealTrade - February 2018 Review
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External Insight - Deutsche Asset Management
Tuesday 27 February 2018EU Money Market Reform - LVNAVs: Cash or cash-equivalent?
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IFRS 9 and Pooled Funds
Monday 05 February 2018A treasury manager and a financial accountant were overheard chatting by the coffee machine recently…
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What could a hard Brexit mean for investors?
Tuesday 12 December 2017As negotiations continue between Theresa May and Jean-Claude Juncker, many are discussing whether we are going to have a hard or a soft Brexit. What does this mean exactly?
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iDealTrade - Local Authority Market Insight
Thursday 07 December 2017Arlingclose launched iDealTrade.net on 8th November 2017. iDealTrade is a platform for local authorities to borrow and lend to one another, a market which has grown massively in recent years due to the high credit quality of local authorities and the flexibility and affordability of the funding they can offer.
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Bank Stress Tests 2017 – Resilience, but no room for complacency
Wednesday 06 December 2017Bank Stress Tests 2017 – Resilience, but no room for complacency
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The REIT way to invest in commercial property?
Tuesday 21 November 2017The REIT way to invest in commercial property?
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External Insight - DCLG considering allowing shared ownership for RTB replacements
Friday 25 August 2017The government is considering proposals from a group of 50 councils to allow them to spend Right to Buy receipts on purchasing properties for shared ownership.
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Bail-in at Banco Popular Espanol makes it a model for future failing banks
Monday 12 June 2017Drowned out by the noise of last week’s UK general election, one event went under the radar: the first demonstration of the formal and swift bail-in of a failing bank under the EU’s Bank Recovery and Resolution Directive (BRRD), making it a model...
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Newham & Barclays LOBO Restructuring
Thursday 02 March 2017Newham & Barclays LOBO Restructuring
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External Insight - Woodford Investment Management Ltd.
Monday 20 February 2017Are UK equities overvalued?
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External Insight - CCLA - Property Sector Perspective
Monday 06 February 2017External Insight - CCLA - Property Sector Perspective
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External Insight - Insight Investments - Asset-backed securities, ‘The Big Long’?
Monday 30 January 2017External Insight - Insight Investments - Asset-backed securities, ‘The Big Long’?
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External Insight - Charteris - Inflation/Deflation Cycle: Why Index Linked Gilts Are Not The Answer
Thursday 12 January 2017External Insight - Charteris - Inflation/Deflation Cycle: Why Index Linked Gilts Are Not The Answer
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External Insight - Payden & Rygel
Monday 09 January 2017External Insight - Payden & Rygel
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External Insight - Federated Investors (UK)
Wednesday 04 January 2017External Insight - Federated Investors (UK)
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Asset Financing and Leasing Variations
Monday 02 January 2017Asset Financing and Leasing Variations
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The Prudential Regulation Authority
Friday 04 November 2016The Prudential Regulation Authority
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Quantitative Easing: Bingeing on Bonds?
Thursday 29 September 2016Quantitative Easing: Bingeing on Bonds?
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Borrowing Update - Post-EU Referendum Vote
Sunday 26 June 2016Borrowing Update - Post-EU Referendum Vote
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Death Of A LOBO
Sunday 26 June 2016Barclays Bank has tackled their problematic local authority Lenders Option Borrowers Option (LOBO) book head on, informing all standard LOBO borrowers they have permanently waived their options to increase the rate on these loans.
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Keep Calm and Carry On
Friday 24 June 2016The United Kingdom has voted to leave the European Union
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