Take a look at markets for derivatives like futures, swaps, or options. They indicate that the distribution of plausible outcomes in markets has widened substantially of late. Implied volatility in bond markets has spiked higher. We call this uncertainty. 2.
Recent developments in the financial system You will probably agree that recent events are not making our jobs – either yours or mine – any easier. The collapse of Silicon Valley Bank and worries about Credit Suisse have sent ripples through financial markets.