Supermarket shelves are being cleared and in financial markets, cash is the only precious commodity. The hoarding of cash by banks, investors and companies illustrates the vast wave of deleveraging that is taking place across financial markets with the echoes of 2008 getting louder and louder.

The real economy and financial system are joined at the hip. Financial market dislocations have prompted emergency rate cuts by central banks, actions that have done little to ease financial stress. An increasing economic shock has also compelled governments to roll out spending measures that support businesses and consumers.

The economic shock triggered by the coronavirus pandemic is becoming a financial crisis, with companies preparing for a cash crunch as economic activity grinds to a halt. Many corporations are tapping credit facilities at banks, with these loans taking up space on balance sheets, thereby limiting the ability of financial groups to operate across financial markets.