UK bonds and equities continue to hold a risk premium as a result of the Mini Budget crash a year ago, experts have argued.
The UK Mini Budget was the defining event of former prime minister Liz Truss and former chancellor of the exchequer Kwasi Kwarteng's tenures, a set of policies which plunged the UK into daily doses of market volatility as markets reacted following 23 September 2022. On the back of Truss' fiscal event, sterling crashed to an all-time low against the US dollar, and gilt yields suffered their highest daily rises in decades, creating a liquidity crisis within pension funds that forced the Bank of England to step in with a billion-pound emergency bond buying programme. Liz Truss' Mini Budg...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
