In low
volatility environments there is not as much premium to be extracted from the markets, but in high volatility it is VERY NICE.
Not exact matches
«Depending on the
environment, capital requirements on traditional variable annuities can be significant so
there's
volatility in the capital backing these annuities,» Gray said.
«I think we're moving back to an
environment where
there is going to be more
volatility, more sector rotation, and higher rates will definitely change what works.»
But it notes that
there was «celebration» about the «great moderation» in macroeconomic
volatility, with only a few people worrying about whether complacency about financial risks in that
environment might threaten it.
But as we shift from what may be perceived as abnormal conditions to more normal conditions — when
there is some degree of
volatility and a higher interest - rate
environment — we think the equilibrium between growth and value will also normalize.
And to the extent that REITs are using up that capacity now, in a fairly benign capital markets
environment, could be problematic should
there be any market
volatility ahead, he says.