Necessity Still Breeds Ingenuity - Archive of SQUALL MAGAZINE 1992-2006

News Shorts And Other Busyness

Housing Charity To Gamble On Money Market

Squall 11, Autumn 1995, pg 13.

A housing association is considering using the high risk derivatives market to fund its debts.

London based Circle 33, which has £500 million worth of property and is responsible for 9,000 homes, is currently in the process of borrowing £40 million from the City.

Derivatives are a high risk money marketing gamble which lost Hammersmith and Fulham council £100 million in 1991.

Margaret Hodge, the Labour MP who chairs Circle 33 and once described aggrieved tenants as “nobodies”, said she had not fully studied the report which was presented to the management committee.

“I’m not a financial expert,” she said. “But others are.”