Thames Water - comment

While we find nothing peculiar about the intensity of the negotiation between the Treasury, creditors and regulators, we concede that we had expected the Treasury to strike a more constructive tone. We were surprised when KKR’s plan was so comprehensively dismissed, chiefly because it required commitment well beyond this legislative period. Perhaps that same perception is taking hold at Barclays, which presumably doesn’t want to be put under undue pressure later this year. The bank seems to have auctioned its £236m position in inflation-linked Class A bonds last week following the government's appointment of FTI and the company’s drawing of its second and final liquidity tranche.