An interesting little conundrum for us here as users of, investors in, the financial markets. What’s the risk appetite going to be like as working practices return to something more like normal?
This might surprise but it’s entirely possible that risk levels – as measured by what other market participants are willing to take a chance upon – will rise as people go back to the office. This might not be quite what we expect given what we’ve seen in the meme stocks but it is a reasonable and logical outcome.
Part of the story is here:
The widespread shift to remote working at City firms has prompted traders to take fewer risks, according to the world’s biggest interdealer broker.
TP Icap, which plays a central role in transactions in financial markets, said that clients had been playing it safe during the pandemic.
Bosses at the broker pointed to anecdotal evidence that some traders were shying away from complicated…