Monday, October 31, 2022

Consols, Gilt and Dutch Auction

Should Rishi Sunak issue perpetual bonds to combat UK's budget deficit? An excerpt from the Financial Times article:

"Perpetual bonds are the ideal tool to use to resolve a serious financial crisis like the present one. Not having to repay the principal provides a tremendous advantage that dwarfs the temporary cost of a high coupon. It could help solve both the housing and pension crises."















Image credit: CartoonStock
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