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Transcript: Toby Nangle on What We Just Learned From Gilt Market Madness

What really caused the selloff?

James Cleverly, UK foreign secretary, left, Kwasi Kwarteng, UK chancellor of the exchequer, centre, and Therese Coffey, UK health secretary and deputy prime minister, right, react during the keynote speech by Liz Truss, UK prime minister, during the Conservative Party's annual autumn conference in Birmingham, UK, on Wednesday, Oct. 5, 2022.

James Cleverly, UK foreign secretary, left, Kwasi Kwarteng, UK chancellor of the exchequer, centre, and Therese Coffey, UK health secretary and deputy prime minister, right, react during the keynote speech by Liz Truss, UK prime minister, during the Conservative Party's annual autumn conference in Birmingham, UK, on Wednesday, Oct. 5, 2022.

Photographer: Hollie Adams/Bloomberg

UK financial assets just experienced once-in-a-generation type moves in the wake of the government's mini-budget announcement. Not only did both gilts and the pound sell off dramatically, they rebounded just as dramatically after intervention from the Bank of England. What does it all mean? And how did pension accounting contribute to the massive volatility? On this episode of the Odd Lots podcast, we spoke with Toby Nangle, an economics and markets commentator who spent several years running asset allocation at Columbia Threadneedle. He explains why we saw such a dramatic move and what the whole thing taught us about market structure. This transcript has been lightly edited for clarity.

Omny Studio: Toby Nangle on What We Just Learned F...