Vol is back with a vengeance. Policy makers don't have the weapons to deal with the shock unleashed by the Corona pandemic. The reason is that all the weapons we do have are either geared to fight demand shortfalls or inflation. We got nothing to fight the massive supply-side disruptions that have been unleashed by the most serious pandemic since the 1918 Spanish Flu. The world economy is already in recession. The markets know. Whence the unrestrained risk-off across asset classes.
Pricing the Term Structure of VIX Futures
Pricing the Term Structure of VIX Futures
Pricing the Term Structure of VIX Futures
Vol is back with a vengeance. Policy makers don't have the weapons to deal with the shock unleashed by the Corona pandemic. The reason is that all the weapons we do have are either geared to fight demand shortfalls or inflation. We got nothing to fight the massive supply-side disruptions that have been unleashed by the most serious pandemic since the 1918 Spanish Flu. The world economy is already in recession. The markets know. Whence the unrestrained risk-off across asset classes.