• March bank stress is not a repeat of 2008, but downside risks remain. • We discuss the underlying drivers of historically high volatility in interest rate markets. • The potential path ahead for rates is wide, underscoring the value of defensive, macro-neutral strategies.

Global fixed income markets have experienced a massive correction this year. Aggressive central bank rate hikes, surging inflation and weaker global growth have driven double-digit losses for duration and credit heavy portfolios.