Sebastian Möller has written a short report on the spread of so-called LOBO (ledender option – borrower option) loans among British local authorities for SPERI comment, the blog of the Sheffield Political Economy Research Institute (SPERI). In his contribution, “Financializing town halls: Local councils, LOBO loans and the derivatives markets”, Sebastian briefly introduces this new type of market debt that became quite popular among UK city treasurers prior to the crisis. He describes how a complex network of different public and private actors including new intermediaries, such as treasury management advisors and brokers, facilitated the spread of LOBO loans. Contrary to experiences made by many continental local governements, in the British case the derivative character of this new financial instrumentwas much more hidden, since LOBOs constitute a form of embedded derivatives. In his PhD research project, Sebastian explores the financialization of municipal debt management across Europe.