A Year For The History Books!

“If you don’t remember history accurately, how can you learn”- Maya Lin.

As we bid adieu to a tumultuous year, the history books will recall 2022 as the year that rocked the global financial system to its core. The fundamental building block of our financial world is the credit or the debt markets, and a perfect storm hit the debt markets as it witnessed the worst drawdown ever. Investors were scrambling for a safe haven and discovered solace in the greenback as the world was marred in the worst geopolitical conflict post the Cuban missile crisis. As the Russian-Ukrainian war unfolded in the year's first half, it became apparent that the worst casualty in the ongoing energy crisis would be Europe.

As Central Banks in the West led by the Federal Reserve resorted to the fastest-ever tightening of the monetary policy, people flocked to USD. Thus, the dollar wrecking ball created havoc in the vulnerable Emerging markets, commodities ex-oil tumbled, and the dominos in the crypto world began…