What's the Bond Market Volatility Looking Like This Year?

option strategies that are less convex have outperformed given the lack of a liquidity event and the grind lower in the market. While rates vol may be nearing or past its peak, vol in credit and earnings may be the theme in 2023. High wage inflation, weak sectors sensitive to rates such as the housing market and demand destruction can see further waves of volatility in the equity market in 2023 before expectations grow that the bottom is in place.