June 18, 2020
Webinar Recording | Stress Testing the Economic Fallout of COVID-19
Stress testing has long been a powerful arrow in the hedge fund and asset manager’s quiver to test how their portfolios may react in extreme market, geopolitical or macro-economic events. In this webinar we stress tested the economic impact of COVID-19 by analyzing four separate scenarios:
- Successful, speedy recovery and coordinated reopening of the economy
- Slow recovery and a mismanaged reopening of the economy
- US economy reopens too early, creating a second wave of the virus
- A financial crisis created by market overreaction to the pandemic situation
We tested each scenario’s expected impact to the S&P 500 and 10-Year US Treasury yields over the next two years.