Volatile markets and higher borrowing costs are expected to continue

Treasury strategies should take a holistic approach to minimising funding costs, while maximising flexibility and access to diverse sources of capital.  Writing in Social Housing, Henrietta Podd of Allia C&C called on associations to routinely consider buying back bonds where the savings in interest costs would make it worth the additional refinancing risk.  She also noted that, due to a lack of bond issuance in the sector recently, there should be opportunities for RPs, especially those with an EMTN programme, to negotiate more attractive deals, for example involving unsecured debt or sub-benchmark size.  She highlighted the importance of close engagement with investors, both to reassure them about strategy and competence, and to identify unmet demand.