While its full and lasting impact is yet to be understood, COVID-19 will amplify existing challenges arising from the cycle of low volatility, debt expansion and low interest rates that presently exists within the world economy and global capital markets.

Across the financial structures that make up global markets, the tightening grip of COVID-19 during February 2020 had a considerable impact on demand and supply across the world economy. This triggered significant volatility and a potentially dangerous feedback loop arising from that trifecta of low interest rates, increased debt provision and the price volatility of assets themselves (and the underlying modelling associated with those assets).