Q&A: Government bonds

Bonds are a commonly-used mechanism to raise capital in the short term

The UK government has unveiled plans to give the Scottish Parliament more financial powers, including the ability to issue bonds.

John Maciver, a partner in the banking and finance practice at law firm McGrigors, explains the finer points of government bonds.

What are bonds?

Why is the Scottish Government keen to obtain powers to issue bonds?

Who is likely to lend Scotland the money, and how likely is it that they will want to lend to the country?

What will the credit rating agencies make of Scotland?

How much will the government be able to borrow?

What is Westminster's role?