- Advertisement -

Related

The Mystery of Historically Low Volatility

- Advertisement -

Stockholm (HedgeNordic) – One of the biggest mysteries in the world of financial markets in the still young Trump era has been the historically low level of volatility despite all the turmoil and geopolitical uncertainties prevailing across the globe.

The current state of the world demands a significantly higher volatility according to the president of the Federal Reserve Bank of New York, William Dudley. Meanwhile, Dudley’s critics believe buyers and sellers can easily agree on prices as there is no dominant scenario in the marketplace. This implies consensus creates volatility, whereas uncertainty does the opposite.

For more information on the low volatility phenomenon and its impact on the performance of CTAs, please access the Mikael Stembom, CEO of Swedish RPM, Risk & Portfolio Management:

VOLATILITY: A ”TAIL EVENT” 2017

Picture: (c) shutter stock.com—olly

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

The Investment Case for European Infrastructure Debt

Europe’s infrastructure needs are expanding as governments and businesses seek greater energy security, lower emissions and more resilient digital and electricity networks. For debt...

Bliwa Balances Fixed Income Stability with Selective Risk-Taking

For insurers, fixed income must do more than generate returns. It needs to provide stability, preserve liquidity, and help match investments to liabilities. At...

Beyond the Yield Premium: Finding Value in Nordic High Yield

The Nordic high-yield market combines shorter maturities, a high share of floating-rate bonds, stronger creditor protections in many transactions and a persistent yield premium...

An Invitation-Only Market: Evli’s Approach to Nordic Mid-Market Loans

The Nordic credit markets offer investors a distinctive combination of attractive yields, floating-rate instruments and access to high-quality mid-market companies. The region’s established private...

P+ Looks Beyond Direct Lending to NAV and GP Financing

Private credit has expanded well beyond traditional direct lending, with institutional investors increasingly exploring specialized financing strategies for diversification and additional sources of return....

Securitized Credit, CLOs and Capital Call Financing Offer New Routes to Fixed Income Diversification

Institutional investors seeking to diversify their fixed income portfolios beyond government bonds and investment-grade credit may find opportunities in securitized credit and capital call...

Allocator Interviews

Voices

Request for Proposal

- Advertisement -