Structural Calm, Embedded Convexity
Between calm realised volatility and elevated forward risk, markets reflect both muted short-term moves and embedded macro risk premia. In this Volatility Brief, we examine Powell’s ‘higher-for-longer’ stance, JPM’s collar roll, AI-driven overvaluations, and our strategy positioning across gamma, vega, skew, and beta.
Fed Rate Cut
The Federal Reserve’s latest rate cut offered a fascinating real-time study in volatility. Even when policy moves are widely anticipated, the manner of the market’s reaction can reveal subtle but important signals.