Short volatility exposures pose risks

A dangerous game

Yuriko Mita

Selling volatility and correlation has been a consistent money-spinner for hedge funds over the years – and an environment of low realised volatility since September 2010 has tempted many back to this trade. That hasn’t changed over the past month, say dealers. Some investors seem relatively unfazed by political upheaval in the Middle East and an earthquake in Japan on March 11, which triggered a tsunami and has even led to fears of a nuclear meltdown. These sellers believe markets will become

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

What gold's rise means for rates, equities

It has been several years since we have seen volatility in gold. An increase in gold volatility can typically be associated with a change in sentiment and investor behavior. The precious metal has surged this year on increased demand for safe haven…

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here