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Posts tagged ‘market volatility’

Weathering the Market Volatility Storm; Clear Skies on the Horizon for High Yield



Since the beginning of June, high yield spreads have widened by over 150 basis points (bps). The energy sector is trading above 1,000 bps, blowing past the December wides. And, although the rest of the high yield sectors have held up, no sector has been immune to market volatility. In light of…

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From the desk of risk: How to Hedge Tail Risk Efficiently



We can give three simple reasons to support the use of volatility products to hedge tail risk in fixed income portfolios. First, equity volatility and bond prices have a strong conceptual link.  If you think of a corporate bond as functionally equivalent to a risk-free asset (like a Treasury bond)…

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