Tale of two markets
FOR a sign of the times, look at two markets — in gilt-edged stock, and in money. They are really markets in the same thing — the Government's various promises to pay, with various different dates on them, or (like War Loan or pound notes) with no date. Both were clubs which the Bank of England wanted to be open to new members. The gilt-edged market came first. The Bank had nearly 40 applications for membership, and accepted 30. Some have not stayed, and few have made money — a little while ago, four were thought to be in profit, but that was before interest rates started to climb and prices started to slither. Now the money market is opening for membership. The likely candi- dates number no more than four or five — and a (possibly prejudiced) view from within the club is that some of them are having second thoughts. You could buy your way in, if you were deemed a fit and proper person, by bidding for the fine old house of Seccombe Marshall and Cam- pion, for many years bill broker by appointment to the Bank. It now belongs to Citicorp, which is cutting back, and has already given up making a market in gilt-edged. The last money-market house to come on offer, although its best asset was its tax losses, set off an auction. I hear of no auction for Seccombe — in fact, I have yet to hear of a bidder. Come to think of it, I might make an offer myself (good address, jolly company, I could wear my top hat) but I am not sure whether the market, its morale already low, would regard that as a threat or a promise.
Previous page
