Whitepaper - December 2018

The Year of the Central Banks

Stress-testing the impact of monetary policy tightening

2019 will be a decisive year for three of the world’s biggest central banks. In this paper, we use the stress-testing capabilities of our Axioma Risk platform to examine the impact of rate hikes on a global multi-asset class portfolio, with a particular focus on equity and credit spread performance in response to a yield curve inversion.

Authors

Christoph Schon, CFA, CIPM

Executive Director, Applied Research