Consider two examples of what Dan Davies calls unaccountability sinks. One is a privatised water utility and the other is a French-based provider of IT services to the public sector. Like many companies, Thames Water and Atos reaped returns for investors in the years when the UK political consensus favoured privatisation and outsourcing of public sector services.
That was before public fury at Britain’s water and sewage systems, and the role of IT service provider Fujitsu in the Post Office scandal. Bonds issued by Atos and Thames Water are now trading at deeply distressed levels as investors prepare for a changing climate in the wake of what polls predict will be a landslide Labour majority after the 4 July general election.
Levelling the Playing Field
Barclays and Labour's growth plan
Plummeting bonds reflect souring UK mood for outsourcing and privatisation
Dimon rolls trading dice with excess capital