The mice turned on the cat in UK politics this week, causing volatility in the bond market and a headache for issuers of sterling bonds. Prime minister Keir Starmer is under fire from Labour Party colleagues and faces a challenge to his leadership following a grim set of local election results.
Uncertainty over whether there will be a change of PM and what the fiscal policies of a new one will be is roiling the Gilt market. But what of other issuers in sterling? We discover there is plenty of demand for bonds at these higher yields, but whether issuers have any interest in funding at those prices is another matter.
The multilateral development bank bond market is about to welcome a new entrant: the African Development Fund. We discuss what the ADF is, how much it will issue, when it will start and why it is coming to the bond market.
Elsewhere in the MDB sector, the International Finance Corporation has executed a novel securitization long in the works. We analyse the deal, who bought it and what the future will be for this method by which MDBs can manage their balance sheets.
Finally, Ontario this week made its pitch to host another new multilateral bank: the Defence, Security and Resilience Bank. To display the province's credentials, its premier Doug Ford revealed it would issue a "resilience" bond. Resilience is becoming a huge topic in the capital markets but the deal would be the first of its kind, so we looked into its progress to market and what it will be used to fund.
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