Review of 2020: chaos on a roll
Risk.net Vanishing liquidity, the Ronin collapse, XVAs – the pandemic wreaked havoc in risk transfer markets The Covid-19 pandemic brought the financial system to the brink in 2020. Lockdowns turned cities into ghost towns overnight and economic activity ground to a halt. From hastily assembled home offices, market participants faced one crisis after another: equity volatility surged; the US Treasury market seized-up; and oil futures turned negative. At times, it felt like a year-long crisis was being squeezed into six weeks. CME Group pulled the plug on one of the world’s largest pro...