This is the latest edition of THE TREASURY HUB Banking and Treasury Markets Bulletin of 2021. A lot has happened since the end of the Summer and it looks like it is going to be a busy run into Christmas and (most probably) a volatile start to 2022.
Growing fears about the pace and scale of inflation globally has led to a re-assessment by the market of the prospects for long-term interest rates. In addition to this, Libor is disappearing for GBP loans from December 31st (so hopefully your documentation and systems are prepared!).
Corporate activity remains buoyant with sellers continuing to achieve strong multiple of earnings across the majority of sectors.
On the currency front, GBP has continued to strengthen and has recently dipped below 84p against EUR, bringing it back to where it started in the week or so after the Brexit vote in June 2016. USD has had an even better run and is over 8% lower (stronger) against EUR than it was at the start of the year. From an investment perspective, stock markets performed well over the Summer but have been jumpy over the past few weeks.
Section 5 in this Bulletin looks at interest rates and inflation.
Please get in touch with our Corporate Finance team if we can be of any assistance.
The Treasury Hub - Banking and Treasury Report November 2021 can be downloaded here.
For any queries relating to this newsletter, please contact Chris Ball, Partner.