Pension funds and the collapse of the bond market
Shortly after Kwarteng’s £45 bn “mini” budget announcement, a sharp market-sell off occurred, as investors believed they should be compensated more for the risk they’re taking investing in the UK economy. Prices of long-term gilts suffered, especially for 30-year bonds whose yield rose from 3.48% to 5%, within a matter of days. When interest rates […]
Continue with Facebook Continue with Google