Risk.net

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.

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