Mon, Jan 23, 2017
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. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised