After an eventful week following the government's mini budget on the 22 September, read our latest briefing note, providing an update on the UK gilt market.

Headlines:

• Against a global backdrop of rising yields, increases in UK government bond yields accelerated in the wake of the government’s mini budget on the 22 September
• The speed and scale of yield rises has placed immense pressure on UK pension schemes to find cash at short notice to meet collateral calls on LDI programmes
• On 28 September, the Bank of England halted planned gilt sales and commenced the purchase of £5bn of long-dated bonds per day for 13 days, citing material market risks to UK financial stability
• This time-limited intervention has improved liquidity and reduced yields, providing a window for LDI investors to re-position portfolios and ensure they are in a strong collateral position

Download Briefing Note

For further information, or to discuss any of the issues raised in this briefing note, please speak with your usual Hymans Robertson consultant.