Vedanta Hedging helped to first expose the issue of LOBO loans sold to Councils on Channel 4 in July 2015.
Nick Dunbar, Senior Consultant at Vedanta Hedging spoke to the BBC about the Northamptonshire County Council’s LOBO loan with RBS. In this instance, the scale of the toxic nature of the LOBO can be simply illustrated by the fact that an £18m loan from the Government was needed to refinance a £10m loan from RBS!
Nick Dunbar: “Northamptonshire was paying 7.72% in interest on the LOBO which it was legally obliged to pay for the next 40 years.
“Over that timescale, paying 2% on £18m is preferable to paying 7.72% on £10m.”
You can read the full article by clicking on the following link: https://www.bbc.co.uk/news/uk-england-northamptonshire-50391757