UK faces big test with Gilt syndication

摘要

Tensions will run high this week for the UK DMO's first Gilt syndication since chaos in the currency market and concerns over a potential hard Brexit catapulted yields higher. Syndicated Gilt sales tend to be smooth exercises, with a captive audience of investors pouring in billions of orders over a very short space of time. However, the market is not usually buffeted by the type of headwinds the UK has faced since the country voted to leave the EU, with the pound plunging to an all-time low against a basket of currencies the week before last. "We have to face a number of challenging issues in the present environment and I do not think our role is necessarily going to get any easier," Robert Stheeman, chief executive officer of the DMO, told IFR.