Capital Market Assumptions (as of March 31, 2020)
Given the speed of the economic and market shock, we made adjustments to our assumptions to account for the impact of COVID-19, particularly in markets where consensus estimates were clearly stale.
Given the speed of the economic shock and market reaction, we made adjustments to our assumptions to account for the impact of COVID-19, particularly in markets where consensus estimates were clearly stale.
In this article, we describe two adjustments that we made to our assumptions for the end of Q1 2020 to reflect the effects of these sudden changes. We describe corporate earnings profile adjustments, which heavily influences equity market returns, and then move on to discuss corporate default rate outlooks, which impact credit asset classes.
To learn more, download the full article above.