Volatility Curve Suspiciously Quiet Leaves Analysts on Edge
- A stretch of stock selling leaves volatility curve unmoved
- Hedge funds not necessarily hurting on short-VIX bets
Market Outlook: Is Volatility Here to Stay?
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All the churn in U.S. equities of late has done little to knock relationships in the volatility market out of whack -- and that worries some strategists.
Take the VIX curve, which compares the main index of equity turbulence today to levels priced into the market weeks and months down the line. Normally in times of chaos the arc inverts, as volatility in the here and now surges above levels implied by futures. This time, it’s holding steady.