Bloomberg Surveillance Gains Resume as US-China Trade Tensions Ease
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Oct 20, 2025 
Michael Green, Chief Strategist at Simplify Asset Management, dives into the world of index funds and highlights the crowding risks from passive investing, affecting large-cap stocks and market concentration. Steve Englander, Global Head of G10 FX Research at Standard Chartered Bank, raises concerns about the quality of U.S. economic data affecting monetary policy. He also discusses cross-rates and euro mispricing, while revealing the importance of using the employment-population ratio as a more reliable labor metric.
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Why VIX Rises In A Bull Market
- The VIX can rise even during a bull market due to realized volatility among mega-cap names and mechanical option-strike dynamics.
- Implied correlation and variance-swap width amplify VIX sensitivity when markets make new highs.
Surging Mid‑Size Bankruptcies Signal Credit Stress
- Corporate bankruptcies above $50M have surged, suggesting broader credit stress beyond isolated instances.
- Low new issuance and crowded secondary buying are compressing spreads despite rising underlying stress.
Private Credit Multiplies Bank Exposure
- Private credit amplifies risk by sitting between banks and operating companies using leverage routed through non‑bank lenders.
- Rapid growth in non‑depository financial institution lending increases system leverage and transmission to the real economy.