The Importance of Interest Rate Volatility in Systematic Trading Strategies

Interest rate volatility is important for all sorts of strategies. In 2022 and somehow 2023, it's your pillar of safety in any diversified portfolio. If you can see more clearly the end of the tightening cycle of the Fed, it means that the distribution of outcomes is very limited. So when you have your interest in volatility, which is going down, you can hit price,.