Secured lending – on airport landing slots. Are we back in 2007?

In delivering a course on Advanced Cash Management yesterday, we always have a portion about Notional Pooling as a variation on cash-collateralised lending, and an explanation of Risk-Weighted Assets and credit risk generally. I usually bring on the example that no lender should advance funds to a low-cost airline without security, because low-cost airlines also […]

Rate-rigging in the news again

So apparently the Bank of England had some knowledge of the rate-rigging when it was going on, according to the UK newspapers today.

LIBOR as a reference rate was viewed for 30 years as the supreme neutral benchmark, the rate at which prime banks offer deposits to one another in the London interbank market – the […]

TARGET2 imbalances back up 2012 highs

The imbalances within the ECB’s TARGET2 payment system have risen to same levels as they were in the midst of the last Euro debt crisis. These are the amounts that the different Eurozone National Central Banks lend to one another overnight, in order to settle mutual payment obligations. In other words the Bundesbank – and […]

Cash management – no end to low yields but new European banking crisis on the horizon: review your Cash Management policies and practices now!

There is no end in sight to the low-yield environment around the Euro and all currencies associated with it. This is the meaning of the European Central Bank’s announcement that it is prolonging its Qualitative Easing programme. Even if the US starts to increase rates, this will not alter the ECB’s stance as the ECB […]

The English Patient – an exercise in financial gravity

Having looked at the latest discussions on UK public spending and the European Investment Bank’s plan for their strategic investment fund, the situation looks ever more like my cartoon, with loads of money draining out of the patient and not so much going in.

The parties representing Irish, Welsh and Scottish nationalists are planning to gang […]

The Smith Commission Report – buying the Great SNP Bluff

The Smith Commission was established to convert the ‘vows’ made by Cameron, Clegg and Miliband to sway the Scottish referendum result – from a narrow ‘No’ to independence to a wider and decisive ‘No’.

In his follow-up paper to last year’s influential study of the options for an independent Scotland’s currency, Bob has analysed the Smith […]