Systemic risks in the global financial markets will remain moderate over the coming year, but uncertainty around growth and inflation, regulatory tightening and an uneven recovery across regions will continue to generate market volatility.

Chief Credit Officer Richard Cantor and Marie Diron, of the Sovereign team, discuss how the pandemic crisis has accelerated the increase in government debt levels globally and what it means for the broader economy.

>> Read research related to this episode here.

China’s plan to achieve economic sustainability by addressing income inequality and social risks will have far-reaching effects for many types of debt issuers. A lack of predictability and clear communication around policy implementation are the key near-term risks, while potential long-term benefits include improved productivity and social stability.

Gary Lau of the Corporate Finance team and Michael Taylor of the Credit Strategy & Research team discuss China Evergrande’s financial troubles and the credit implications for China’s property market, banks, government and potential spillovers to the global economy.