Volatility: A World Disrupted

How can investors successfully navigate increasingly volatile markets

The return of volatility across most asset classes has taken investors by surprise this year. Stocks have been highly volatile across the board. Fixed income products have seen their prices fluctuate wildly as central banks began to tighten monetary policy. Commodity markets could not escape either. This collection of in-depth research provides allocators with insights into the causes of volatility across asset classes in 2022.

Volatility And the Digital Transformation (State Street)

Digital currencies have grown into a genuine alternative asset class. However, questions about their volatility profile and correlation with other assets still remain.

Have Central Banks Permanently Repriced Corporate Credit? (MacKay Shields)

Central bank policies have rattled bond markets this year. What has the impact been on pricing corporate credit?

The Case for Securitized Assets (BlackRock)

For compliance reasons, this paper is only accessible in the United States and Canada

Securitized assets remain largely misunderstood by investors. However, these assets can provide plenty of benefits – including reducing overall portfolio volatility.

Three Reasons to Stay the Course Amid Volatility (NN IP)

During volatile times, investors can be tempted to take cover in more liquid assets – including cash. This can lead to panic selling, but it is best to stay the course.

Low Volatility Portfolios Cushion Macroeconomic Risks (Robeco)

This paper examines the exposures of low-volatility portfolios to various sources of systematic risk. Low volatility portfolios may struggle to defend against black swan events, however.

Video: Short-term Crisis or Something Bigger? (RLAM)

For compliance reasons, this paper is only accessible in the United Kingdom

The UK economy and financial markets are going through unprecedented times. Inflation risks have pushed the Bank of England to tighten, giving cause for concern to investors.

Volatility And the Opportunities In Convertible Bond Arbitrage (Man Group)

Rampant inflation, rising rates, war in Ukraine and now looming recession are making it almost impossible to convincingly predict the US 10-year yield.

Risk Highlights: Markets Fell but So Did Volatility (Qontigo)

Investor sentiment seems to remain bearish, even as volatility has continued to decline since the end of the second quarter.

SPECIAL REPORT

Low Volatility Equity: An alternative to complexity (Special Report, 2022)

How best to assess, analyse, and act upon an allocation to defensive equities. The suggestion is that a complex, diversified portfolio is not always sufficient to overcome equity risk.