Thu, Aug 28, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Risk drops across markets as VIX declines to lowest level since '07

Tuesday, October 30, 2012

Bailey McCann, Opalesque New York: Risk was down substantially in Q3 for all regions according to new data released today by US-based risk monitoring firm Axioma. The decline tracks with the biggest drop in the VIX since 2007. Axioma’s short-horizon risk forecast for the FTSE Developed Index was roughly half its level of a year ago and down 25% percent from the end of the second quarter. Declines in overall market volume suggest that investors may have stayed on the sidelines fearing less than optimal corporate earnings and global macroeconomic tumult - fears that were largely justified.

For the second consecutive quarter, statistical risk factors did not seem to pick up anything that was not reflected in the fundamental models, suggesting once again an absence of lurking risk and, hence, the reduced likelihood of a "surprise" in the coming months. The possibility of a market correction was also reflected in data from Bank of America Merrill Lynch reported on by Opalesque earlier today.

"The macro issues we are seeing in the headlines could already be baked into stock prices, and for that reason volatility has remained subdued. Or, the extreme uncertainty in current markets may have simply paralyzed investors, which would also have had a dampening effe......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Hedge fund assets decline in July - eVestment[more]

    Bailey McCann, Opalesque New York: Total assets in hedge funds declined in July and dropped 0.49%, marking the industry's second monthly asset decline in 2014, according to the latest asset flows data from eVestment. Despite the asset decline, total industry AUM remained above the $3 trillion

  3. AIMA makes 'the case for hedge funds'[more]

    Bailey McCann, Opalesque New York: The Alternative Investment Management Association (AIMA), the global hedge fund industry body,

  4. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  5. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius