D-star is a force for good

Research firm CrossBorder Capital says ‘D-star’ – a hump in the US Treasury curve that reflects investor risk appetite – is a simple quantitative metric with the power to predict market implosions. It says the position of D-star can help predict key stress indicators such as the European Central Bank’s global risk aversion index, the Vix and spreads between AAA and BBB corporate bonds.

Read the full article