Pegasus Capital

£ LIBOR spreads to implied BOE rate close in on 2016 high

The £ 3mth LIBOR fix has been moving higher without any notion of change to BOE rate. As rates have been moving up generally, and there is always additional premium across the year-end turn, it is easy to overlook that higher credit risk is now appearing in the £ LIBOR fix

PegasusCapital - 06/12/2018

UK petrol prices look set to fall, with not immaterial effect on RPI

Petrol & Oil currently make up 35 parts per 1000 within the RPI according to the ONS, or 3.5% of the Index. The weighting within the CPI index is lower, nearer 22 parts per 1000 or 2.2% of the index

PegasusCapital - 21/11/2018

A View from the Bridge - Aug 2018

The Bank of England has raised interest rates above 0.5% for the first time since March 2009, although this is still the first-time rates have been set at 0.75%, base rates were cut from 1% to 0.5% as part of the ongoing emergency response to the financial crisis

PegasusCapital - 06/08/2018

A View from the Bridge - May 2018

The Bank of England left interest rates unchanged at its May meeting. Markets had largely written off any probability of an increase following the BOE Governor’s BBC interview in late April where he alluded to weaker Q1 growth and Brexit uncertainty delaying the prospect of higher interest rates

PegasusCapital - 18/06/2018

A View from the Bridge - Aug 2017

Yesterday’s FT article, which appeared on page 2 of the printed edition, highlighted the Bank of England’s concerns over interest rate complacency

PegasusCapital - 10/09/2017

A View From The Bridge - May 2020 (2)

The risks of a deflationary outcome remain very elevated. Our understanding of likely household responses is becoming more informed, particularly with regard to genuine uncertainty, precautionary savings balances being built (where possible) and the likely consolidation of credit related debt. Turning the tide on the risk of viral infection and saving lives is the driving policy of government, but by definition this just pushes another rising tide of shrinking demand onto the economy.

PegasusCapital - 07/05/2020