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of themes that were on people minds at the time . “ From a fiscal perspective it caused some readjustment of expectations , but then from a monetary policy perspective – because of the lack of inclusion of the OBR and no discussion around how all of this fiscal stimulus would be funded – it caused nervousness that it would increase gilt borrowings at a time when the Bank of England had already announced that it would be liquidating its balance sheet in a controlled manner as market conditions allowed , just as rate expectations were being upgraded to higher levels .”
Adding fuel to the fire , the announcement was paired with a lack of transparency on how the fiscal policy would be paid for , alongside assumptions of increased supply in the marketplace during a new interest rate environment , which caused people to readjust their exposures either through duration or for the asset class as a whole . The whole fiasco took place at the end of the week , leaving very little time for markets to react .
“ On Monday morning , we started to see some signs of threat within the marketplace as some of the asset managers realised that there would be margin calls
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