UK’s Efforts to Create Municipal Bond Market Fall Flat

A UK agency set up to kick-start the country’s municipal bond scene has closed to new business, abandoning a decade-long push to emulate vibrant markets in the US and Europe.

The UK Municipal Bonds Agency will now focus on servicing one outstanding note rather than seeking fresh deals, according to corporate filings seen by Bloomberg News. The change in strategy comes after the agency failed to convince enough local authorities of the merits of raising funds on capital markets rather than borrowing from central government.