Thames Water: a handy guide for worried counterparties

The UK’s largest water company – now junk-rated – has £1.3bn in swaps liabilities. Dealers ought to be safe, but face a host of headaches and questions

Just outside Oxford, a 300-kilometre footpath along the river Thames passes under a bridge. Both abutments are decorated with graffiti, but one giant mural on the far side of the river is particularly eye-catching. It depicts a paunchy, reclining, middle-aged man, naked but for a posing pouch. He rests on an inflatable adrift in scummy water, and is smugly smoking a thick roll of cash. Emblazoned on his one item of clothing is the name and logo of Thames Water.

The artwork was added to the