Lowering the standard
The unprecendented decision by Standard Life and the FSA to suspend trading in thelife assurer’s bonds was taken after news leaked out about negotiations between the two parties over Standard Life’s financial position. David Watts looks at the bizarre episode
It has been variously described as “a shitshow”, “odd” and “a complete misunderstanding of how the bond markets work”. It was a historic moment and one that the bond markets would really rather forget. It was by all accounts the first ever suspension of trading in a corporate bond.
There were two bonds in question: a euro- and a sterling-subordinated issue belonging to Standard Life, Europe’s
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