Possible scenario
Coordinated Policy Backstop
15% Chance
The Ministry of Economy and Finance, the Bank of Korea and primary dealers coordinate a broader liquidity package. This reduces the probability of forced selling without requiring the BOK to abandon its anti-inflation stance.
Initial impacts
- Market volatility Down
- Riskier companies' borrowing costs Down
- 10-year Treasury yield Up
- US dollar Down
Secondary impacts
- Finance +1.0%
- Technology +0.8%
Portfolio impact
S&P 500+0.7%
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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