CIO spring update: Stress test

During the passage from winter to spring, markets have continued to be swayed by the same drama that dominated investor attention in 2022: central bankers’ high-stakes efforts to rein in inflation, without sabotaging financial stability.

Episodes such as last year’s gilt market volatility and this year’s banking sector turbulence underscore the perilous nature of this balancing act. Indeed, the removal of unprecedented levels of monetary stimulus has proved to be a global stress test for financial markets.

In our CIO spring update, teams from across LGIM examine what this means for the world economy, asset classes and a variety of investment capabilities.