FT Alphaville " On redeeming the war loan Posted by Izabella Kaminska on Jan 13 09:57. From the minutes of the UK's Debt Management Office consultation with Gilt-edged Market makers and investors held on January 12: There were also a number of calls for clarification around the prospects for the redemption of 3½% War Loan, although mixed views were expressed on whether there was a case for calling it. It was noted that any such decision would be taken in the context of the Government's debt management objective and that if any decision was made to redeem 3½% War Loan, that decision would be announced via the usual channels to all market participants at the same time. The point is, the discussion is being had. As FT Alphaville pointed out earlier this month Societe Generale's rates strategist Julian Wiseman is among those pitching for the redemption. He thinks it's a good idea a) because the bond has no maturity and borrowing costs have finally made it economical to redeem the War Loan, and b) because it could amount to a micro-QE for Britain. We'll keep watching that debate. This entry was posted by Izabella Kaminska on Friday, January 13th, 2012 at 9:57 and is filed under Capital markets. Tagged with Dmo, gilts, redemption, UK, war loan.