Operating at the Intersection of Technology and the Capital Markets
Tag: Bank of England
Approximately 1.2 million residential mortgages in Great Britain are adjustable rate mortgages (ARMs). As the Bank of England (BOE), continues to move interest rates higher (3% rate today and likely moving to 3.5% on December 15th), the average ARM holder will have to absorb significantly higher monthly payments which translates to commensurately less disposable income. … Continue reading ARMs Will Drag Great Britain and The U.S.
The Bank of England expanded the scope of its bond-buying program by purchasing inflation-linked Gilts. Our view is that the BoE will stay in the bond market somewhat permanently and will ignore its self-imposed QE deadline of October 14th. Our view is that the U.K. will be dealing with Stagflation for years to come given … Continue reading BoE Foreshadowing The Fed?
It feels as though a crisis of confidence is brewing. What will happen when the Bank of England stops buying long bonds? Can the U.K. run its version of QE while inflation is climbing? How high will the Dollar climb? How low will earnings and economies fall?Will Credit Suisse fail? Will the Fed pivot? (I … Continue reading Crisis Of Confidence & The Fed Put
A rate hike is what's next for the U.K. The hike will come before the bank's November meeting. The U.K. has an abundance of economic problems yet deflation is not one of them. The Bank of England put forth a weak rate increase last week. The Bank of England would tell you the reason for … Continue reading What’s Next For The U.K.?
The Bank of England stepped into the bond market, agreeing to purchase Government long bonds until October 14th. The BoE plans to restart its Government bond sale program on October 31st (the central bank plans to sell GBP 80 billion of bonds each year as part of its tightening process). How did the U.K. find … Continue reading The U.K., The U.S., Inflation & Real Yields
The Bank of England will likely institute an emergency rate hike of 25-50 BPS today in our opinion as the Pound plummets against the USD (FX Headwinds Will Persist Into 2023). What is fascinating is that the fiscal side loosened policy last week as U.K. Prime Minister Liz Truss pushed tax cuts. Conversely, the monetary … Continue reading The U.K. Is Not In An Enviable Position
If I were acquiring companies on the corporate side or covering stocks, I would be concerned about Europe - the U.K. in particular - headed into winter as Energy prices are expected to spike. Higher inflation and higher interest rates will have a negative impact on many of the former FinTech, Enterprise Software and Business … Continue reading U.K. and European Concerns
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