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Two days of market vertigo make 2015 VIX calls prescient

Banks tell equity derivatives clients to get ready for more volatility

New York

IT'S the consensus view of options analysts that day-to-day turbulence in the US stock market will increase this year after falling since 2011. So far, nothing's happened to prove them wrong.

Deutsche Bank AG became at least the third major bank telling equity derivatives clients to prepare for more frequent bouts of volatility as the bull market in the Standard & Poor's 500 Index approaches its seventh year. Already, daily swings in the S&P 500 have widened more than 50 per cent in the past month from last year's average through Dec 5, Bloomberg data shows.

Stocks plunged on Monday, with the S&P 500 dropping 1.8 per cent to 2,020.58 and the Chicago Board Options Exchange Volatility Index...

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