{"id":24,"date":"2025-07-02T13:47:33","date_gmt":"2025-07-02T13:47:33","guid":{"rendered":"https:\/\/blog.moria.org.uk\/?p=24"},"modified":"2025-07-02T15:06:21","modified_gmt":"2025-07-02T15:06:21","slug":"qe-losses-2025","status":"publish","type":"post","link":"https:\/\/blog.moria.org.uk\/index.php\/2025\/07\/02\/qe-losses-2025\/","title":{"rendered":"QE Losses 2025"},"content":{"rendered":"\n

The accounts for the UK’s Asset Projection Fund for 2025 are released<\/a>.<\/p>\n\n\n\n

Something that I did not mention in my last post is that the APF accounts are presented in a rather obfuscated fashion. Specifically, the Bank is the legal owner of the APF’s share capital; but the Bank is not the beneficial owner since the Treasure underwrites losses and redeems the profits. So the reported profit\/loss, to the legal owner, is always 0, and one has to look at Note 8 to see the beneficial owner’s profit or loss:<\/p>\n\n\n\n

\"Note<\/figure>\n\n\n\n

The bad news: projected losses increased by another \u00a323B (before this year’s payment from the Treasury). That’s an increase added to the \u00a3178B of mark-to-market losses estimated in last year’s accounts<\/a>.<\/p>\n\n\n\n

The good news: looking only at cashflow, the Treasury had to transfer only \u00a336B to the APF this year, down from \u00a345B last year. That still hurts when the government is struggling to make just \u00a35B\/yr in savings on the welfare bill, but it hurts a bit less at least. That money is mainly to meet the \u00a320B\/yr deficit in interest payments (the shortfall in payments received on gilts owned vs payments owed on the loan from the Bank).<\/p>\n\n\n\n

The tangible size of the APF decreased by \u00a378B to \u00a3490B. Currently the APF has a gross valuation, ignoring liabilities, of \u00a3656B, roughly 1\/4 of which is those mark-to-market losses owed to it in future under the Treasury guarantee.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The accounts for the UK’s Asset Projection Fund for 2025 are released. Something that I did not mention in my last post is that the APF accounts are presented in a rather obfuscated fashion. Specifically, the Bank is the legal owner of the APF’s share capital; but the Bank is not the beneficial owner since […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-24","post","type-post","status-publish","format-standard","hentry","category-money"],"_links":{"self":[{"href":"https:\/\/blog.moria.org.uk\/index.php\/wp-json\/wp\/v2\/posts\/24","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.moria.org.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.moria.org.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.moria.org.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.moria.org.uk\/index.php\/wp-json\/wp\/v2\/comments?post=24"}],"version-history":[{"count":5,"href":"https:\/\/blog.moria.org.uk\/index.php\/wp-json\/wp\/v2\/posts\/24\/revisions"}],"predecessor-version":[{"id":30,"href":"https:\/\/blog.moria.org.uk\/index.php\/wp-json\/wp\/v2\/posts\/24\/revisions\/30"}],"wp:attachment":[{"href":"https:\/\/blog.moria.org.uk\/index.php\/wp-json\/wp\/v2\/media?parent=24"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.moria.org.uk\/index.php\/wp-json\/wp\/v2\/categories?post=24"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.moria.org.uk\/index.php\/wp-json\/wp\/v2\/tags?post=24"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}