Wonga words worry Wirral
A debate stirred up over inter-authority lending in Wirral has highlighted the need for financial training of councillors. Conservative councillor Leah Fraser published a blog criticising the...
View ArticleWelsh LAMS suspended
The Local Authority Mortgage Scheme (LAMS) in Wales has been suspended after a decision from the Welsh Audit Office. LAMS is a UK-wide scheme – there are 82 versions of it in England and several...
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What’s in a name?
There are going to be some new banks appearing on our high streets over the next few years as a result of various planned de-mergers. As part of its penalty for receiving state aid in 2008, Lloyds...
View ArticleCommission proposals spell ‘de facto abolition’ of CNAV MMFs
European Commission proposals issued on Money Market Funds this week have been badly received by markets, with commentators saying that they go too far. The EC is proposing that all MMFs based in...
View ArticleComplexity and cost the barriers to Libor loss recovery
A consumer banking website has been looking into whether councils should be trying to recoup potential losses from the Libor-fixing scandal. The website Move Your Money, which usually challenges the...
View ArticleManchester cleans up with airport investment
Manchester City Council will receive the second part of a special dividend from Manchester Airport in two weeks time. The authority has already been paid £11m of the dividend, which relates to the...
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Expertise and risk management key to LA bond investments
Expertise and a reluctance to invest in long-duration securities are preventing local authorities from accessing yield from corporate bonds, found one of the panels at Room151′s Local Authority...
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Accounting for bonds and funds
Investing in government and corporate bonds is rising up the local authority treasury management agenda again, but I’ve recently heard several people cite “difficult accounting” as a drawback. I know...
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Money market funds: the end for stable NAV?
Robin Creswell is Managing Principal at Payden & Rygel Global Ltd Speaking at the Local Authority Treasurers Investment Forum provided an opportunity to poll attendees on their ownership of money...
View ArticleMatt Bance on multi-asset investing for treasurers
Matthew Bance is UK strategist for UBS Global Asset Management. He works on UK funds, including the Multi-Asset Income fund, for which UBS launched a local authority share class in June. The fund seeks...
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Has Wales banned money market funds?
Surely not, I hear you cry. If the devolved government actually prevented local authorities from using one of the most secure and liquid investments available, then it would cause an outcry, wouldn’t...
View Article‘Knee-jerk’ reaction to Iceland needs rethink
Councils need to shake off an overly risk-averse mindset they have adopted since the Icelandic banking collapse, according to leading local authority treasury figures. A debate at a finance conference...
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A big week for banking reform
Four things happened in a single week in December to set the scene for the future credit risk of lending to banks and building societies in the UK and Europe. Firstly, after months of waiting, the...
View ArticleLandsbanki debt auction to free up council cash
A group of councils have today taken part in an auction aimed at immediately recouping most of the money they are owed by defunct Icelandic bank Landsbanki. The auction, organised by the Local...
View ArticleInterest rate rises will demand tough choices of treasurers
Council treasurers face tough investment decisions following this week’s inflation statement by Bank of England governor Mark Carney, according to a leading fund manager. Carney effectively dropped his...
View Article£140m recovered from Landsbanki auction
Councils taking part in last week’s auction of Landsbanki claims recouped £140 million, according to the Local Government Association. As exclusively revealed by Room151, the majority of councils still...
View ArticleMMF vote delay could see reforms hit the rocks
Proposed regulations which could hit local authority investments in money market funds (MMFs) could be scuppered by a decision to delay a vote on the matter during a stormy session of a European...
View ArticleConcentration risk in Scottish treasury investment ‘worrying’
Scottish council investments are dangerously concentrated in two banks, according to a stark warning by treasury advisor, Arlingclose. Speaking at the CIPFA Scottish Treasury Management Forum in...
View ArticleMMF reform dropped from ECON agenda
The European Parliament has dropped proposals for the reform of money market firms which had raised fears for council investment strategies. A meeting of the parliament’s economic and monetary affairs...
View ArticleBroxbourne sets up property company with £5m loan
Broxbourne Borough Council has unveiled plans to create a new arms-length company to develop housing for market rent in order to provide a new income stream. Budget proposals approved by the council at...
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