However, brewing in the background there was an issue relating to pension funds, which neither of us had been made aware of – a problem that would ultimately bring my premiership to an abrupt and premature end because of the panic it induced. The day before the mini-Budget, the Bank of England raised interest rates by 0.5 per cent, whereas …
Britain’s biggest fund manager has suffered a £21bn hit after turmoil in the pensions market triggered a wave of panic selling. The drop highlights the impact Liz Truss’ mini-Budget had on asset managers as borrowing costs jumped, forcing pension funds to quickly raise capital to meet cash calls. As gilt yields rose, pension fund managers were issued with “margin calls” …
