23 Jul 2015

Impact of Summer Budget rent cuts on housing asset valuations

INTRODUCTION A 1% nominal cut in rents each year for four years will be materially below principal projections in association business plans.  The change effect will be cumulative and will set a lower starting rent for modelling beyond 2019.  We are working with our clients to reset their business plan.  Much will depend on the […]

23 Feb 2015

TradeRisks’ letter to the FSA

The Baron Turner of Ecchinswell Chairman The Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS 29 March 2010 Dear Lord Turner The legacy role of banks in non-bank lending and hedging Banks have traditionally provided funding and hedging acting as principals. The financial crisis has critically reduced banks’ appetite for risk, […]

25 Jul 2014

Accounting Update: Amendments to FRS 102 – Financial Instruments and Hedge Accounting

The FRC has recently issued amendments to FRS 102 in respect of the classification conditions for the treatment of “basic” financial instruments and conditions of hedge accounting under sections 11 and 12. The amendments come into effect for financial years beginning on or after 1 January 2015, so RPs will need to publish accounts under […]

17 Jul 2014

Sale and Leaseback

A number of housing associations have been approached with similar offers from institutional investors based on a sale and leaseback (“S&L”) financing structure. This note considers the key financial aspects of these offers relative to more traditional forms of borrowing.

10 Oct 2013

Deferred Funding: Long Term Finance Without Carry Cost

Deferred Funding Bond (1)Deferred Funding BondDeferred funding provides a route for borrowers to access long term finance while minimising cost of carry. The structure, which was pioneered on Knightstone’s £100m bond issue in September 2013, allows the borrower to draw down funding on a pre-agreed schedule so that funds arrive as they are needed. The […]

08 Jul 2013

New Social Rent Regime: Impact on Housing Associations

At first sight a shift from RPI+0.5% to CPI+1.0% looks innocuous with the RPI/CPI gap last month at 0.4%.

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