'Volatility Genie Is Out of the Bottle,' Says Harnett

The video discusses the current market environment, highlighting increased volatility and its impact on funding models. It explores the relationship between rising government bond yields and credit market dynamics, noting the widening of credit spreads. The discussion also covers the potential challenges to economic expectations and the role of central banks, particularly the ECB, in responding to market changes. The video emphasizes the need for caution in the current economic climate.

What are the implications of increased market volatility on funding models?

How do rising government bond yields affect credit spreads?

What factors should be considered when evaluating the relationship between equity and bond valuations?

In what ways might central banks respond to widening credit spreads?

What challenges do central banks face in the current inflationary environment?