Over the last few decades the world has witnessed innumerable crisis occurrences that have adversely affected the social-economic, financial and political environments. Each event has had distinctive effects and impacts on the world market that prevailed for the long haul. The most recent events are the Iraq-USA war, trade conflicts between China and USA, Brexit, climate emergency, the Covid-19 pandemic and the existent war between Ukraine and Russia. Each of these affairs somehow impacted the global financial market.<\/p>\n
Entrepreneurs, corporates, market participants (independent investors), investment decisions predominately pin their hopes on world affairs. Various factors imply the cause of the financial market crisis, however geopolitical issues (Risk) have become the fundamental determinants for financial investment. According to 2017 Gallup survey, 75% of respondents expressed concern about the economic impact of various military and diplomatic conflicts taking place around the world, ranking geopolitical risk ahead of political and economic uncertainty. Similarly, European Central Bank highlighted geopolitical uncertainties as a salient risk to economics in its Economic bulletin and the internal monetary fund.<\/p>\n
This article focuses on the impact of geopolitical crisis (issues) on the debt market, in view of the fact that the sudden escalation of conflict is what triggers investors’ panic. Also, it will explain what geopolitics crisis & risk is and then the selected military and geopolitics crisis since 1939. It will also look at the ongoing war between Ukraine and Russia and its effects on the debt market<\/a>.<\/p>\n