# Is there still life in the low-vol bet?

## Quant analysts disagree on rate sensitivity of $150 billion strategy Low-volatility funds look set to be big losers during the reflation trade, with$11.5 billion leaching from the sector in the second half of 2016, according to research house Bernstein.

A common view is investors are taking flight from the strategy’s oft-cited sensitivity to rising rates. Yet the exodus – which started mid-last year and gained steam after the US election – has fired up a debate about how marked that sensitivity really is.

#### 7 days in 60 seconds

###### CCPs, handling default, and cyber risk

The week on Risk.net, September 15–21, 2018