If there’s anything the 2008 financial crisis taught everyone, it would be that putting everything on credit is a bad, bad thing and quick money isn’t the answer to most corporate problems. While it may press on the inevitable fact that some businesses must be shunned and sacrificed, everyone wants to survive.

Therefore, a repeat of 2008 could happen because of the Corporate Bond Market.

Banks Cut Off Their Bonds

Over time the UK’s corporate bond growth had seen a 75 per cent reduction to bond inventories of banks, which are the primary dealers, since 2008. Meanwhile, the market had grown in size the past 10 years due to affordable offers due to low interest rates the Bank of England offered previously.

A combination of new rules on buying and selling bonds left banks with reduced inventories, making it difficult to liquidate. This can introduce large pricing swings in the market, which might begin a collapse.

Bad Interest Rate Rise

The Bank of England is signalling it would increase interest rates by the following year. Analysts are spooked as investors, who so quickly purchased corporate debts and bonds for cheap interest rates, might pull out as they put in.

Unless banks increase their capital, this couldn’t happen. However, due to increasing UK bank levies and stricter laws, banks such as HSBC intend to move their global headquarters out of the UK, bringing with it a huge amount of their debt.

No One Knows How It Would Work

If such pull out does happen, analysts are afraid of several complex issues.

According to Citi’s Credit Strategist Matt King:

“There is concern about bank regulation putting dealers under pressure. Most of the evidence shows dealers have become more efficient.”

King points out that investors pulling out could mean credit mutual funds losing much of their cash once savers withdraw money as soon as the rates rise.

Central banks backing banks use economic assumptions to work out the valuations in their mortgages. Corporate bonds are difficult to track because the companies can default in unpredictable ways.

Mining Company Glencore is down by 30 per cent closing at its lowest on Monday after Investec warned about huge debt troubles. Investec warned that Glencore’s valuation will suffer if metal prices do not improve. In turn, Glencore had announced the suspension of dividends and plans to sell its assets to raise money to help cut down its £21 billion debt pile. This was also Glencore’s CEO Ivan Glasenberg’s reaction to shareholder pressure.

Billions Wiped Off

Glencore lost about £3.5 billion from its market value. However, Glasenberg’s agreement to cut debt would help the company at least protect its debt rating. The low valuation of metals, including Glencore’s main products copper and coal, contributed to the downgrading of their prices.

Meanwhile, the directors and employees from Glencore who took up about 22 per cent of the company’s new shares may lose much in the next few days. However, investor and market confidence would still increase in the process.

Reason For Failure

Investec analysts said “If major commodity prices remain at current levels, our analysis implies that, in the absence of substantial restructuring, nearly all the equity value of both Glencore and Anglo American could evaporate.”

Glasenberg, who holds a giant share in the company, believed it was better to fail in value than to miserably lose the company’s credit rating by being unable to pay its billions of debt.

Wall Street has declined for a second straight day on Wedneday as the tech sector fell in value including tech giant Apple.

Apple shares slumped 4.3 percent to $125.14, a day after the iPhone maker’s revenue forecast dropped below expectations. It is Apple’s biggest drop since January 2014 .

“We are getting a little bit of indigestion in the market over the past two sessions from tech earnings,” said David Schiegoleit, managing director of investments at the Private Client Reserve of U.S. Bank in Los Angeles.

“We stepped right into the beginning of this week with IBM disappointing, followed by Microsoft, Apple and a couple of others, so we are just getting a little bit of heartburn in the market from those earnings releases on the tech side.”

Microsoft has stumbled to 3.7 per cent, it’s biggest drop from January as stocks fell to $45.54. It has reported its biggest quarterly loss attributed to the failed Nokia phone venture and little demand for Windows OS.

Meanwhile, Yahoo had shed about 1.2 per cent at $39.24 after it forecast some lower-than-expected revenue for the current quarter.

About 50% of Americans leave their assets and properties in confused hands after their passing because of their lack of an estate plan. Most 40-50 year olds believe it to be a morbid or even a cursed thing to do, but truthfully, estate planning is essential to avoid confusion upon death and a streamlined approach to making sure your assets are properly distributed. So here are five things you need to remember.

  1. Revocable Living Trust

A revocable living trust allows your heirs to receive their inheritance when they achieve the conditions placed by the estate planner. Most of these revocable living trusts evenly spread out the distributions of inheritance even for young adults.

  1. Full Funding

Full funding ensures that your trust remains private and the trust doesn’t have to go to court to settle the distribution of assets to your children and inheritors. When you fully fund your trust, your matters are kept quiet simply because the entire situation is discussed through closed doors.

  1. Guardian

Naming an adult or a trustee for your young children is important. The guardian would be responsible for handing over your inheritance to your children once they fulfil your conditions.

  1. Never Too Young

No one is ever too young to create a will and trust. When your assets grow, the more you should consider creating your own will and trust as soon as you can. This will help avoid confusion upon your passing.

  1. Update Regularly

As you are young, situations change, and you’ll have the chance to regularly update your will and estate plans to match the current situation of your inheritors, or even yourself.

In the United Kingdom, a student who studies in a public school has obviously lower debt compared to those who study in private institutions. Meanwhile, after college, most will still have debt. Adding debts for marriage, property loans and other expenses, the average joe’s grand total in the United Kingdom costs around £25 billion. This is quite shocking!

Despite being married, having a baby when you’re not ready yet isn’t a very good situation. If you’re both just starting out with your careers and you really lack money, you’ll need to do everything in your power to insure you could provide everything for your newborn. If you intend to keep the baby, here are three steps to effectively handle the situation.


  1. Do Away With Your Excesses


Unfortunately, playtime is over for you if you finally have a child. It’s time to cut back on your smoking and drinking. You’ll also need to watch out for things that you purchase. You cannot make any costly purchases that do not yield you great results. You’ll need to do away with your excesses as this can help you save money.


  1. Ensure that You Are Insured


Ask your employer if their health benefits cover your wife or yourself as you are going through your pregnancy. It would be better to get a straight answer now than have questions, and even possible uncertainty, in just a few months.


  1. Your Baby Will Not Need Anything Extravagant.


You’ll definitely need some baby gear and spend for baby food and milk over the next few years (aside from a deficit of sleep). Most parents think that high-quality brands are the best choice when it comes to taking care of their child. In all truthfulness, this isn’t true. Your baby just needs something that could facilitate feeding and walking them around, but they do not need to be of too high quality.

According to the Cass Business School and finance research company New City Agenda, the UK’s “toxic” and “aggressive” culture will take generations to change. Following the series of scandals involving the UK’s big four banks, the total cost of the UK industry’s misgivings have reached more than £38.5 billion in fines and redresses in 15 years.

Conservative MP and New City Agenda co-founder David Davis said “A toxic culture which was decades in the making will take a generation to turn around.”

Between 2008 and 2014, banks had received 21 million complaints. At least £27 billion of the total redress had been credited to PPI complaints alone.

Archbishop of Canterbury Justin Welby said “It is clear that much more needs to be done by all stakeholders for trust to be restored in our financial institutions.”

The Cass Business School and New City Agenda report indicates that banks have culture changes programmes under way. Cass Business School Professor and Report Author Andre Spicer said “Regulation has improved, and big banks have all implemented new programmes to improve their cultures,” he said.

“Smaller banks and challenger banks are beginning to offer the customer real choice, and often have healthier cultures.”

“Many culture-change initiatives are fragile, and their success is not ensured. It’s clear to us that much work still needs to be done,” he added.


It’s never easy to earn money. With today’s inflation, investing in assets and products is crucial. Unfortunately, some predators want a thick slice of the cake, often using illegal ways to take away the shares of other people. Here are some scams you need to be mindful of.

        1. Online Shopping

Unless your online shopping is done through eBay and Amazon, never think twice to turn down online shopping offers that ask for your credit card information. If you offer your card details on a gambling website or unverified online shopping website, it is highly likely you get financial fraud. You could use Paypal to hide your card details and allow the online payment service to provide the funding instead.

        1. Consumer Non-Investment Fraud

Online shopping’s other danger is the purchasing of items that are not in existence. Consumers also get fake or sub-quality apparel. In some situations, these items may even be stolen. Be sure to inspect the brand logo, quality and legitimacy of your articles before you decide to take them home.

        1. Dating Scam

Many international swindlers appear through the form of online dates. They would use your emotions to have you send money to them. Some of them may also try to perform lascivicious activity during your interaction, which they may use to blackmail and extort money from you.

Couponing is a great way to save money when you’re buying things in bulk. With coupons, you could buy plenty for the price of less and walk out of a grocery with more savings and less expense than you could imagine. Of course, it takes a bit of a plan, and here are some basic steps to help you benefit from couponing.

  1. Multiple Subscriptions

Newspaper clippings won’t just do for coupon shoppers. If you really want to get plenty of coupons to use for your business, it is imperative that you subscribe to multiple magazines, newspapers and other publications. Subscribing to online website newsletters also help, including those that give you daily deals.

  1. Semiotics

Understanding the terms written on coupons is essential to save time looking for coupons and categorising them accordingly. For example, a sale may only be a term to attract customers, but it does not really mean significant savings. Most terminologies used in extreme couponing are acronyms, such as On Your Next Order (OYNO), Buy One Get One (BOGO), and Limited Time Only (LTO).

  1. The Legalities

All coupons are regulated by law and consumers must know their rights before they could use a coupon. Sometimes, manufacturer coupons are only applicable for certain branches, or some managers can decline online coupons as stated in the fine print. Bringing a hard or soft copy (via smartphones or tablets) will help you resolve disputes with establishments as well.

During the early centuries of the world, kingdoms and lords have kept their treasures inside their safe. Gold was a powerful type of currency at that time and more common commodities strengthened smaller echelons of society. However, this old way of thinking regarding money does not work in a modern, capitalist money system.

Keeping your money “inside your vault” or “inside your socks”, for a humorous term, is not the right way to ensure the value of your money stays as it is. People need to invest the money they make to sustain or grow its value. The modern outlook of money is to ensure the value of your money remains as it is, or you could make them flourish.

This is why people must be financially educated with the modern trends in keeping the value of one’s money. Banks offer savings accounts worldwide that ensures the value of your money is retained despite currency devaluation and inflation on a daily basis, throwing back to the “gold vault” era.

Money can also grow when you invest them in businesses and startups. As gold still retains its value, companies and businesses becoming bigger and better investments as they continue to appreciate. Gold appreciates, but the acceleration rate of business valuation improves continuously as it performs well.

Money in the vault is not the best idea in the world anymore. Money in the bank, in companies, and in growing stocks, is the new world way of looking and working with money.