IMF chart showing increased correlation between stocks and bonds in the post-pandemic period.

1 #IMF: Since the start of the #pandemic period—with #supplyshocks that fueled #inflation - #bonds have become less effective in cushioning #volatility in #stocks. Instead of offsetting #equityrisk, bonds are increasingly moving in tandem with stocks. 🧵

Reassessing SAM equity shocks: Is the current calibration still fit for purpose? For South Africa insurers, do prescribed equity shocks – under the framework for solvency assessment and management – still reflect the risks that carriers face?

The data tells an interesting story about how market dynamics have evolved since the original calibration.

Keen to hear your thoughts - are you surprised at the volatility over the last 14 years?
https://buff.ly/4fajOu0

#RiskManagement #SAM #SouthAfrica #EquityRisk #VaR #StandardFormula #