Possible scenario
Kuril Security Escalation
20% Chance
Russia uses the spying allegation to justify additional deployments or exercises around the disputed islands. Japan responds with surveillance flights and public coordination with the United States, increasing headline risk without making direct military conflict the base case.
Initial impacts
- Market volatility Up
- Riskier companies' borrowing costs Up
- 10-year Treasury yield Down
- Oil prices Up
- US dollar Up
Secondary impacts
- Industrials +0.7%
Portfolio impact
S&P 500-0.4%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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