UK assets still carry Mini Budget risk premium

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...