The Great Repricing
Markets and Central Banks react aggressively to the inflationary environment. Rates volatility rises, and visibility is poor as this monetary shift takes place and the stagflation story gains ground.
Stabilisation
Markets gradually shift their attention away from inflation and onto growth. The repricing of rate curves is mostly done, and yield volatility gradually decreases. Growth concerns affect low quality credit.
Less uncertainty about future inflation, growth and Central Banks’ monetary policies suppresses rates volatility. Credit spreads fully reprice, offering attractive entry points in a context of higher dispersion.
Normalisation
We
are here
Source: Amundi Data is as of 26 September 2022 CB: central banks