And so, as the “Have I Got News For You” Twitter feed puts it, we begin the third attempt at 2020 … hopefully this time we’ll get past February half term without any major screw up. The obvious challenges are pretty familiar by now: Covid variants, inflation concerns, or maybe vice versa … Foremost amongst a series of geopolitical concerns is either the ongoing wrestling between the US and China or Putin’s latest attempt to stave off Western influences by threatening to invade Russia’s neighbours.
Some uncertainties are always going to fall into the “difficult to hedge” category. But in terms of risks which we can do something about, there are concerns with more known unknowns where there remains plenty of work to do. Treasury concerns for most housing associations boil down to choices around the level, tenor, and extent of rate-fixing within financing arrangements. In 2021 we saw a lot of long-term fixed-rate institutional funding which was appropriate and prudent in our view. Most housing association treasurers rightly see themselves as running a pretty predictable ship in terms of long-term borrowing requirements… Download the full Market Update