The stock market euphoria, which accompanied the reflation of major global economies in the wake of the pandemic, is abating.
Cast your minds back to 2014, when the Caribbean Island of Puerto Rico, burdened by a chronic budget deficit, spooked the US municipal bond market by passing legislation to restructure some of its enormous $73bn debt pile. US Municipal Bond ETFs reeled and wider markets were spooked, the country’s debt downgraded to ‘junk’ status.
A pandemic like no other. Governments around the world have been given little choice but to lock down communities to control the spread of SARS-CoV-2, generally referred to as coronavirus.