It is a decade since Lehman Brothers collapsed. We have published a paper assessing the impact of the Great Recession on capital markets, what the current implications are and how this will likely play out in future. We argue that the US has increasingly differentiated itself from the rest and that the UK and Eurozone remain largely on a monetary treadmill they cannot easily get off. This has significant implications for bond and equity markets, as well as other asset classes.
The paper covers a wide range of issues starting with a description of the policy errors that lead to collapse followed by an analysis of regional difference and opportunity. We then look at the monetary and fiscal response which is still arguably the key factor in asset allocation 10 years later. The paper goes on to examine the outlook for bond and debt markets, fiscal considerations and an analysis of the Euro and its impact on policy. We look at the corporate and consumer outlook as well as the increasingly important political implications, many of which have their route in the crisis.