Hard-hit firms mull market rescues as governments change support goalposts

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By Owen Sanderson
07 Apr 2020

Companies in sectors that lack government support packages are having to weigh moving quickly to secure costly private-sector rescue capital against waiting and hoping governments extend existing bailout or liquidity schemes to them. The cost of Carnival Corp’s $6.25bn package last week showed how expensive private sector cash can be, but many sectors’ prospects of receiving public money are better than the Panama-domiciled cruise company.

The UK’s specialist lender segment is one such group. These companies typically rely on wholesale funding through bank warehouse facilities and securitization markets, but have been lobbying, through trade body UK Finance, for access to the Bank of England’s term funding scheme, which is presently only available ...

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