AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Macro & Volatility™
Macro & Volatility™ #4: Higher Rates, Higher Growth, Higher VIX?
Jun 16, 2024
Exploring the effects of rising interest rates on the VIX and equity options market, historical trends of buying calls in the 90s market, the challenges for the Federal Reserve in managing volatility levels, and the constraints on future easing measures due to stubborn inflation levels.
09:26
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Higher interest rates lead to increased volatility in equity options and VIX.
- Potential Fed policy shift towards higher rates may signal prolonged market adjustment period.
Deep dives
Impact of Rising Rates on Volatility Markets
The podcast discusses the impact of rising interest rates on volatility markets, particularly in relation to recent economic data like CPI and PPI reports indicating higher inflation and wage gains. As rates climb, the VIX and equity options experience increased realized volatility, implied correlation, and prices. Higher implied volatilities such as those seen in Nvidia reflect market reactions to changing economic conditions, leading to a shift in the dynamics of the Fed put and requiring a reevaluation of options pricing.
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode