Possible scenario
Credit Stress Test
−0.5%
A less likely but important scenario is that the equity volatility shock exposes weaker liquidity in credit markets. This would shift the story from an options-driven equity selloff to a broader financial-conditions event.
What it moves
- Finance−0.9%
- Consumer Cyclicals−0.8%
- Riskier companies' borrowing costs
- 10-year Treasury yield
Keeping an eye on this scenario?
Tilt can alert you when its probability or impact shifts, or send you a recommendation when it crosses a threshold.