The Mystery of the Stubbornly-Low Volatility Index Is Deepening
- VIX ETPs have created flood of liquidity in the futures market
- ‘Roll forward’ built into ETP structure could suppress prices
UBS’s Julian Emanuel Says Buy Volatility Now
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Call it the curious case of the tail wagging the VIX.
The U.S. stock market’s main volatility gauge -- the CBOE Volatility Index, better known as the VIX -- is at its lowest level since 2007. That seems strange in light of the geopolitical anxiety surrounding the French elections, the saber rattling with North Korea and the mixed fiscal and economic signals coming from the U.S.