Explaining The Dispersion Trade (guest: Mandy Xu)
The Market Huddle
00:00
Divergence between Rates Volatility and Equity Volatility
This chapter explores the reasons behind the divergence between rates volatility and equity volatility, highlighting how rates volatility is driven by uncertainty around policy rates and macroeconomic outlook, while equity volatility is driven by recession risk and deleveraging events. The chapter also discusses the implications of this divergence for the current economic cycle.
Transcript
Play full episode
