The invasion of Ukraine by Russian forces initially led to a sharp re-pricing of risk by investors. Heightened Russia/ Ukraine tensions are not new, and the risk of invasion has been present for various months as back as November 2021 when Russia moved troops close to the Ukraine border. Yet this was generally seen as more of a threat by Russia to Ukraine, rather than a clear intention to initiate conflict. A full-scale invasion of Ukraine was certainly not being priced in and the significant moves in equity markets since then confirm this view. However, the correction in equity markets started before the Ukraine invasion, triggered by persistent inflationary pressures which led to a more hawkish tone by central banks and more aggressive guidance on interest rates. In the summer of 2021, the market was pricing in no rate hikes in the US in 2022, but by February, rate hike expectations for the year had moved up to seven rate hikes of 25bps each. At a macro level, investor focus was firmly on the growth and inflation mix, with growth expectations remaining above trend but with momentum slowing, while inflation pressures persisted. Against this backdrop of reflation, long duration...