While the global economic outlook remains uncertain, the recent banking breakdown, and resurgence in financial stability risks, has sparked a rapid reassessment from economists, with the subsequent tightening in lending standards, and decline in credit growth, now expected to pose significant headwinds to the economy over the medium-term.

A calm descends on markets and after the collapse of Silicon Valley/Signature Bank and the ensuing chaos in the interest rate and bond markets (between 9 March and 24 March), we see that market participants are pricing market risk more efficiently.