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Months after its own financial turmoil, U.K. set to release new budget
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In the U.K., the collapse of SVB Financial brought to mind its own financial turmoil about five months ago.
Like U.K. pension funds were in October, SVB’s bond portfolio was caught out by the huge rise in interest rates. In both instances, the country’s central bank stepped in to backstop their respective financial systems. One key difference was that the U.K. crisis was exacerbated by the use of derivatives, whereas SVB’s difficulties stem from a lack of derivatives use.
The…
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