When Volatility Spikes, Financial Things Break - The Case of UK Gilts and PensionsWhen Volatility Spikes, Financial Things Break - The Case of UK Gilts and Pensions
When Volatility Spikes, Financial Things Break - The Case of UK Gilts and Pensions
What is volatility and what causes it to rise and fall? How volatility itself contributes to more volatility such as in the example of the chaotic UK government bond market where long-term yields have increased by 4% in 2022.
Topics covered include:
How the role of volatility has changed in financial markets
What caused UK interest rates to spike and long-term bond investors to lose 50%
What is liability-driven investment
What drives increases in volatility and volatility spikes and spillovers are more frequent
How to earn income from shorting volatility and what are the risks
What we can learn when financial securities blow up
