Category: Economy

BusinessEconomy

Leveraged Loan Market Faces Scrutiny Following Major Corporate Defaults

The sudden bankruptcy of First Brands Group has triggered warnings about systemic risks in the leveraged loan market. Analysts suggest hurried due diligence and aggressive CLO growth may be masking underlying credit problems that could impact the broader economy.

Market Tremors After Major Corporate Failure

Investors in the $2 trillion leveraged loan market are sounding alarms after the abrupt collapse of First Brands Group, with sources indicating this could signal broader troubles in credit markets. According to reports, the manufacturer’s rapid bankruptcy just weeks after subprime auto lender Tricolor’s failure has raised concerns that these may not be isolated incidents.

by Darren Holt
EconomyPolicy

Chancellor Reeves Considers Energy Bill Relief and Tax Measures in Upcoming Budget

Chancellor Rachel Reeves is reportedly considering interventions to reduce energy bills, including potential VAT cuts. The government faces a £22bn fiscal gap while maintaining commitments to key tax rate freezes.

Energy Bill Relief Measures Under Consideration

The government is reportedly planning “targeted action” to address rising living costs, with energy bills being a primary focus of the upcoming Budget. According to reports from the BBC, officials are considering cutting the current 5% rate of Value-added tax charged on energy, which could provide immediate relief to households. Another option under discussion involves reducing regulatory levies currently added to utility bills, sources indicate.

by Darren Holt