Central bank’s exercise aimed at understanding how ‘severe stress scenario’ could affect financial sector
US Federal Reserve forecasts suggesting ‘higher for longer’ interest rates have caused bond yields to soar — and bondholders to sell. Borrowers on floating rates are also feeling pain. But money market funds and catastrophe bonds still have fans
Investors and policymakers face another type of higher-for-longer uncertainty
Vix trading is headed for a record amid uncertainty over rally and the impact of rising rates on economic growth
Vixtravaganza
Short positions in 2-year Treasury futures reached record highs in August
Surge in use of zero-day-to-expiry instruments creates disconnect from fundamental value
Very short-dated options account for 43% of volume in S&P 500 options
Commodity trading advisers aim to catch up after missing out
Revenues from group’s three UK entities jumped 68% last year
Or Montier moments?
Trading the witching hour
Vix volatility index falls to pre-pandemic levels in spite of rising interest rates and bank failures
Fun with asterisks
Even if a deal is done to avert a disastrous default, the process is likely to be chaotic with risks of shocks
Gensler’s worried
AI hype alone explains a chunk of the US market’s gains in 2023
Cboe set to launch 1-day Volatility Index in biggest change to Vix in years
SEC chair Gary Gensler says ‘once in a generation volatility’ highlights risks from shadow banking sector
Markets have recovered from shocks in March but there is a new reality for investors
The OFR wades in
Bond market reversal following collapse of Silicon Valley Bank stings so-called CTAs
Daily trading volumes more than doubled as failure of SVB sparked headlong dash to safety of government debt
Volatility in bonds and stocks has left lenders on sidelines of $11tn home loans-backed securities market
Options at warp speed
