UK utilities weigh creative inflation-hedge revamps

Hedge restructuring would see risk transferred to investors via new RPI-linked bonds in a solution that was first applied by Electricity North West


UK utility company Yorkshire Water is considering a radical restructuring of its inflation hedges that would separate them into interest rate and inflation components, with the latter novated to a special-purpose vehicle (SPV). The structure – known as an inflation repack – essentially reduces the funding and counterparty exposure banks face in existing trades, with much of the risk being transferred to investors via new bonds linked to the UK's Retail Prices Index (RPI). It is thought to have

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

New investor solutions for inflationary markets

Geopolitical risks, price volatility, clashing cycles, higher interest rates – these are tough times for economies and investors. Ahead of the 2022 Societe Generale/ Derivatives and Quant Conference, spoke to the bank’s team about some…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here