UK Chancellor George Osborne proposes 100-year bonds. Essentially his message is "I Will Gladly Pay You 100 Years From Now, For a Hamburger Today". Whether it's Tuesday of next week or Tuesday a hundred years from now, the safe bet is the debt will never be repaid.
The Telegraph reports Britain to offer 100-year gilts
Yesterday, bonds fell sharply due to stronger-than-expected housing price and consumer confidence reports. That reflects the belief that the economy is mending, and as a result, the Fed will deliver on its promise to dial back and then end QE. Ten year Treasury yields rose to the 2.10%-2.11% level. Various commentators claim that rates will zoom higher either right over that point or at 2.25%. Russ Certo of Brean Capital claim’s there’s a “technical vacuum” at 2.11% that will lead 10 year rates to gap up to 2.25%.
Britain's finance minister George Osborne will next week unveil plans for bonds of at least 100 years, as the government seeks to capitalise on historically-low interest rates, sources said Wednesday.Chancellor of the Exchequer Osborne will use his annual budget statement to launch a consultation on super-long bonds and could also unveil perpetual gilts, on which the capital is never repaid but interest is charged forever, a Treasury source told AFP."The chancellor is expected to announce this at budget" on March 21, the source told AFP.
George Osborne, the Chancellor, has announced that the UK will be looking to issue 100 year gilts or government bonds. The stated reason is that this is to take advantage of currently low borrowing costs. But this doesn?t actually make sense. But the total cost of a perpetual should be the same as a five ...
Does it make sense for the government to sell off the Tote?The first question is: how much could it get for it? Let’s take Ladbrokes as the obvious comparator. It has a market capitalization of £868m, having made pre-tax profits of £257m in the last financial year. This gives a multiple of 3.4. Yes, this is low - which shows how (some) prices are still depressed right now.
Following yesterday's inexplicable ramp in stocks, which perhaps was driven by the collapse in oil (which sent energy companies higher because a 30x energy forward PE is cheap), and by the latest battery of disappointing economic data which made it less likely the Fed will proceed with a tightening move, overnight futures have given up a portion of the gains, and were trading down 0.3% at last check.
After finding remains that could be British-born University of Virginia student Hannah Graham, authorities interviewed nearby residents and picked through leaves on the side of a sparsely populated highway, searching for any clues or evidence.
Forensic tests were needed to confirm whether the remains match the 18-year-old Graham. They were discovered by a deputy Saturday in a heavily wooded area of Albemarle County that is home to horse farms about 19 kilometres from the University of Virginia campus. Graham disappeared Sept. 13 after a night out with friends.