University – January 2022
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 neighbors.
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 organisations boil down to choices around the level, tenor, and extent of rate-fixing within financing arrangements. In 2021 across the sectors we work with we saw a lot of long-term fixed-rate institutional funding; this was appropriate and prudent in our view and that is likely to continue. As example, at the end of 2021 Centrus was pleased to arrange senior debt funding for DIF Capital Partners, a student accommodation project for the London School of Economics & Political Science; over £100m of long-dated funding has been provided by Pension Insurance Corporation. The project is a greenfield PPP that includes the design, build, financing, operations and maintenance of new student accommodation facilities and comprises of 676 beds and associated communal spaces and services… Download the full market update.