Institution warns: the UK may be on the brink of a "Tras moment" again.

date
20/11/2025
Asset management company Ashmore CEO Mark Coombs stated that countries like the UK, which have persistent fiscal deficits and rely on financial market financing, are undoubtedly facing the risk of experiencing another "Taper Tantrum" moment. "If you are such a country, once investors lose confidence in you, the problem is much more than just a price reassessment. You will face a 'buyer strike' in a significant portion of the bond yield curve. Once confidence collapses, you will encounter a real market shock." However, Pacific Investment Management Company co-Chairman John Studzinski holds a different view. "I don't think there will be another 'Taper Tantrum'. If you forecast the risks in advance, there won't be panic selling. At the time, one-third of the causes of the 'Taper Tantrum' were policy-related, and two-thirds were chain reactions triggered by the UK pension fund LDI hedging strategy."