Wall Street Offloads Crash Insurance as Fear Fades Across Assets

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Key Points

Appetite to hedge against a stock crash has hit a nine-year low by one measure with fear fading across the options landscape big and small, from equity to fixed income..

To Amy Wu Silverman at RBC Capital Markets, its all a little suspect not least given the fact that the worlds most important central bank is in no rush to cut rates, among other reasons that warrant vigilance..

The VVIX Index which measures expected swings in the equity-volatility index itself hit its lowest level since 2015, a sign that investor appetite to hedge against a big selloff has waned..

Stress started seeping out of markets right after Fed Chair Jerome Powell last week played down talk of a rate increase and eased further, as corporate earnings arrived with only a few major blemishes..

For Mike Zigmont, head of trading and research at Harvest Volatility Management, investors should therefore pay attention when stress levels across assets drop this low. ..

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