Looking forward, it is hard to imagine an immediate lifting of the global growth, policy and liquidity clouds. The same goes for geo-political uncertainties, the impact of which has also been to contribute to changing globalization. As such, the analytical focus remains centered for now on the continuation of a bumpy journey to a better destination. It is a process in which markets, with time, should better differentiate between credits, thereby providing attractive investment opportunities for long-term investors.

Financial markets enter the second half of 2022 bruised and anxious — bruised by a tightening of financial conditions that, necessitated by high and persistent inflation, is now global in nature and yet far from complete in its full implementation; and anxious as these tighter conditions risk triggering a recession at a time when many countries’ resilience have already been heavily taxed by the battle against COVID.