I have underlined several times that while we did
see volatility in the equity market in Q1» 18, the bond market was numb to any market movements; while Treasuries were falling, junk bonds didn't widen much compared to how they were trading at the beginning of the year.
Not exact matches
This stands
in contrast to
equity and fixed - interest
markets where implied
volatilities are close to their historical lows (
see Box A).
With the backdrop of
volatility seen in the
equity markets and the headline risk headwinds the municipal bond faced all year the total returns of the two asset classes have converged at approximately 3 % year - to - date.
There are 2 Issues I
see that the article makes: 1 > Negative - Sum - Game: Isn't someone who's an intra-day trader or even a high frequency trader doing the same thing
in Equity markets 2 > Leverage: The Idea of options is based on leverage, and apparently option trading has shown to reduce
volatility.