Sober Look

Implied vol dislocation


The recent spike in volatility has created a “dislocation” in the US equity options markets. VIX, which is a measure of implied volatility for large cap shares is now higher than RVX – the small-cap equivalent. This is highly unusual, since small caps …

Disinflation spreads to the UK


Italian consumer inflation remains in the negative territory (see chart), as the nation’s economy struggles to grow. But Italy is not unique – the rest of the world is catching the Eurozone’s disinflationary flu. China’s latest CPI print for example ca…

Ruble for sale


Currencies of most emerging economies rallied against the dollar today, as expectations for the first rate hike in the US shift out to a year from now. There was one major exception – the Russian ruble.