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Market Risk Insights

Portfolio triage

20 May 2020 |
Active ESG
In the Q2 2020 issue of Market Risk Insights, we provide our latest analysis of six key risk factors – volatility, correlation, stretch, liquidity, event and environmental, social and governance (ESG) – in order to help investors navigate the coronavirus sell-off.

Investor fear spikes

The coronavirus pandemic has caused significant collateral damage for businesses, financial institutions, livelihoods and government services, while a collapse in both supply and demand has resulted in extreme volatility.

The crisis has elevated our focus on risk. We face risks to our own health, while the shutdown of shops and businesses has imperilled their survival. In this edition of Market Risk Insights, we use the concept of triage – a method to assign degrees of urgency to illnesses – to categorise and rank the different risks that investors face.

See below for a snapshot of what we see to be three of the most pressing risks in the current environment, or read the report for a fuller picture.


An economy on life support

As we look to the rest of the quarter, economies seem just about sustained by government-aid programmes and central-bank support – for now. Yet these measures can’t last forever. Just as overstretched hospitals triage critical patients, investors must triage the risks to their portfolios and prioritise them. Read the latest edition of Market Risk Insights to take a deep dive into our assessment of the six risks currently confronting investors.

Portfolio triage: navigating the coronavirus sell-off

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