Changes in the political and economic landscape are loosening the links in the global economy. New conditions will favor different strengths as businesses adapt.
Ukraine Russia Perspectives
In the wake of Russia’s invasion, social factors such as energy supply security, consumer protection and responsible sourcing demonstrate the importance of an inclusionary ESG approach.
Russia’s energy tentacles, intertwined throughout Europe’s power network, may prove difficult to excise.
Special Update: Comments on Exposure to Russia and Ukraine in Voya Multi-Sector Fixed Income Strategies
The devastating events that continue to unfold in the conflict between Ukraine and Russia have led to steep price declines in both countries’ financial markets.
- Economic recovery likely undeterred: Rising energy prices add risk to Europe’s recovery but are unlikely to derail the global economic recovery.
- Expect further equity volatility: We see the strongest impacts in commodities, energy and financials, but focus should shift quickly to interest rates and supply-chain resolution.
- Seeing value amid spread widening: We believe the impact of Russia’s actions on fixed income markets has largely played out, and any further widening in credit spreads could present opportunities.