Wed, Apr 26, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Weak US economic data could cause more VIX spikes

Wednesday, February 05, 2014

Bailey McCann, Opalesque New York:

Volatility could be returning to the market following a low volatility 2013. The Chicago Board Options Exchange (CBOE) Volatility Index jumped 34% last month for the biggest January on record. The VIX climbed 16% on Monday to 21.44, a one-year high after economic data showed weakened US manufacturing numbers. The market reaction was notable as there were periods of slightly weaker manufacturing and other economic indicators in 2013 that failed to spark similar activity. With retail sales and non farm payroll numbers still on the horizon, this week could be very active on the VIX.

"I think you're starting to see that the market thinks there has been too much news falling below expectations - China, manufacturing, emerging markets, earnings. This could be a wake up call for what we're in for in 2014," says Will Lloyd, Managing Director, VelocityShares in an interview with Opalesque.

Last week was the single largest week in history for volumes (in terms of number of contracts traded) on the front-month VIX futures, capping off the largest volume month in history. As volatility spikes, so too are there large increases in short volatility bets. During Monday's spike, XIV traded nearly $1bn - almost triple its usual volume. XIVSO also saw a 58.5% increase in January.

Economists expect non farm payrolls to be generally positive for January, the survey week happened before the polar vortex weather system slowed everyth......................

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 - Hedge fund Ecofin says EDP bid for renewable energy unit 'egregiously low', Asia CIOs say "non" to Europe, Billionaire Mike Novogratz says he has 10% of his money in Bitcoin and Ether[more]

    Hedge fund Ecofin says EDP bid for renewable energy unit 'egregiously low' From Reuters.com: London hedge fund firm Ecofin said an offer from Portugal's largest company EDP to buy 22.47 percent of subsidiary EDP Renovaveis "significantly undervalues" the company, in a letter to EDPR's bo

  2. Alternative asset firm YieldStreet surpasses $100m of loans funded in less than 8 quarters[more]

    Komfie Manalo, Opalesque Asia: Alternative asset investment platform YieldStreet reported that it has surpassed $100m in loans funded in less than eight quarters from accredited investors and single family offices. YieldStreet was founded by Milind Mehere and Michael Weisz. In a

  3. Investing - Investor appetite for high-growth IPOs to be tested, Apollo boosts fund's stock allowance for 'diamonds in the rough', Hedge funds uncertain over outlook for Hargreaves Lansdown[more]

    Investor appetite for high-growth IPOs to be tested From FT.com: The US listings market is poised for a busy week with deals that will test investors' appetite for high-growth - but lossmaking - companies. Eight new listings are scheduled for this week, the most since October of 2016,

  4. Hedge funds holding Puerto Rico bonds are looking at a long battle[more]

    Komfie Manalo, Opalesque Asia: Hedge funds which bought Puerto Rico's distressed debt bonds are facing the prospect of a long road ahead to recover their investments as the Caribbean island is attempting to use a U.S. Congress-approved rule that allows it to exploit a bankruptcy-like proceedings

  5. Aris Wealth' quant indices fare well[more]

    Benedicte Gravrand, Opalesque Geneva: Last year, Geneva-based Aris Wealth Management launched indices sponsored by Societe Generale Corporate & Investment Banking. These indices replic