In such a scenario, profits would initially plummet by around 55% before staging a recovery in the medium term. This means that the speed at which interest rates are raised is crucial. The stress test carried out as part of our low-interest-rate survey combined several risks at once.
Initially, the repricing in the bond market was associated with additional volatility in financial markets. Subsequently, conditions settled down more quickly than they did in March/April last year, although further bouts of volatility are possible.