Trusts in line for boost as 'ridiculous' 90s debentures expire

A number of trusts, including Edinburgh, City of London, Bankers, Merchants, and Foreign & Colonial all took out loans in the 1990s with interest repayments of 10% or more – a move branded “a mistake” by City of London manager Job Curtis (pictured).  The Bank of England base rate hit a high of 14.87% in 1989, with many mangers locking in rates shortly after to protect against any further rises. In fact, the base rate declined for the next 20 years, coming to rest at a historic low of 0.5% in March 2009, and leaving many managers trapped in expensive long-term debentures. However, a...