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Is There a Market That Doesn't Blow Up?
Volatility is a measure of risk, and there is no market that escapes it. High yield spreads are blowing out, they will buy protection on emerging market dect cause that correlation. And it all flows downwards, eventually to the higher rated sovereigns. You may think this is like some sort of star wars movie,. It's not. This is how trading desks work. They do it in big size. It's very, very hidden to their retail investor. The nastaks down 30 %. Equity volatilities above 30%. Annualized credit default swamp spreads are widening. But you can't sell your products t so everything is connected.