Skip to content

Traders See Losses in Pound, Gilts Market If Liz Truss Wins

  • ‘Sunak is the favorite of the market,’ says Bluebay’s Hense
  • Traders cite worries over BOE pressure and EU relations
Liz Truss

Liz Truss

Photographer: Jonathan Hordle/ITV/Getty Images

Updated on

The far-reaching economic policies backed by Foreign Secretary Liz Truss would spark losses in UK currency and bond markets, according to investors at some of the top asset managers.

Abrdn Investment Director Aaron Rock described her plans to aggressively ramp up government borrowing as the “biggest fear” for the gilts market. Bluebay Asset Management’s Kaspar Hense predicts the pound will drop 2% against the dollar if she’s chosen as the next UK prime minister.