Just over a year has passed since the gilt market turmoil of September 2022, sparked by the UK government’s so-called ‘mini-budget’. The fallout from the crisis, as the pound fell and gilt yields spiked, prompted an emergency intervention by the Bank of England to restore orderly market conditions against a global backdrop of high inflation and rising interest rates. A significant change in asset class demand dynamics ensued as pension funds sought to meet collateral calls for their LDI mandates.
Since then,...
Just over a year has passed since the gilt market turmoil of September 2022, sparked by the UK government’s so-called ‘mini-budget’. The fallout from the crisis, as the pound fell and gilt yields spiked, prompted an emergency intervention by the Bank of England to restore orderly market conditions against a global backdrop of high inflation and rising interest rates. A significant change in asset class demand dynamics ensued as pension funds sought to meet collateral calls for their LDI mandates.
Since then, yields on longer-dated bonds have risen significantly despite short rate pricing expectations coming down, while concerns over the volume of government bond supply have begun to permeate financial markets. Miles Tym, Fund Manager – Public Fixed Income at M&G Investments, discusses how the fixed income landscape has shifted in the last 18 months and whether the factors that contributed to the crisis are still in place.
Speaker: Miles Tym, Macro Fund Manager, Public Fixed Income - Europe
Host: Harry Bullamore, Investment Specialist, Public Fixed Income - Europe
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