Remember how Northern Rock proved that being too dependent on immediate short-financing was not necessarily a good idea? Remember this chart from the funding model, so noticeably reliant on sub-3-month money?

Now, while it is quite safe to assume that other banks have learned a lesson here, we do wonder whether certain sovereigns may be in danger of falling into the same short-term financing trap.

Note, for example, the current redemption schedule for US government marketable debt:

And look at Germany:

And now Japan:

All three of which manage to make the UK’s repayment schedule look eminently sensible:

As, for that matter, does the Greek plan:

Related links:
UK AAA rating safe for now says Moody’s – FT Alphaville
Testing the AAA boundaries – FT Alphaville

This entry was posted by Izabella Kaminska on Friday, December 11th, 2009 at 15:38 and is filed under Capital markets, Commodities. Tagged with government bonds, Greece, japan, Treasuries, UK, united states. Edit this entry.