The UK Chancellor (tantamount to a Minister of Finance) George Osborne has extended Britain's "Austerity Program" through to 2018 with a series of cuts to government spending and stated "Britain is on the Right Track". What will be the likely impact on Fixed Income markets, specifically on UK debt?
If Britain's credit rating suffers (currently AAA), credit default swaps on UK debt will get more expensive.
As a historical note, the Exchequer, as used in the appellation "Chancellor of the Exchequer", was a government department responsible for collecting taxes and other income, a kind of "ancient" Inland Revenue service which collected revenues on behalf of the King.
David Cameron is the current leader of the Coalition government (made up of Conservatives and Liberal Democrats) that came to power in May 2010 following the resignation of Gordon Brown (the former Chancellor who "could not fail").
If Britain's credit rating suffers (currently AAA), credit default swaps on UK debt will get more expensive.
As a historical note, the Exchequer, as used in the appellation "Chancellor of the Exchequer", was a government department responsible for collecting taxes and other income, a kind of "ancient" Inland Revenue service which collected revenues on behalf of the King.
David Cameron is the current leader of the Coalition government (made up of Conservatives and Liberal Democrats) that came to power in May 2010 following the resignation of Gordon Brown (the former Chancellor who "could not fail").
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