Insurance firms look to time their volatility hedging

Firms consider the return of more volatile conditions

Volatility: a dormant threat

The Chicago Board Options Exchange Market’s Volatility Index (Vix), which tracks expected market volatility on the S&P 500, suggests that stock swings have been particularly low over the past 12 months (see graph). At the end of May, the index was registering an expected movement in the S&P index over the ensuing 30-day period of 11%, its lowest level since March the previous year. The VStoxx, a measure of implied volatility based on the Euro Stoxx 50, tells a similar story.

This is a dramatic

To continue reading...

You need to sign in to use this feature. If you don’t have a 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: