PART V: CREDIT MARKETS
Following the comprehensive and thorough review of the equities volatility markets (Part I) Commodities volatility (Part II), Currencies (Part III) and Emerging markets volatility (Part IV) in 2018, we shall now focus on the volatilities behavior of some of the main credit markets. Obviously we’ll review some of the most important sovereign debts (USA, Germany and Italy) but we shall consider the volatility of one of the biggest US Corporate IG ETF, before completing this study with the volatility of the biggest US High Yield ETF. For every single one of these markets we shall study their prices evolution and the consequences that these evolutions had on their volatilities, implicit and historical. And we’ll try to explain the rational (or not) reasons which led these markets to move the way they did in 2018. And finally we will exhibit some conclusions which were not necessarily expected. As indicated we shall start with the biggest and most liquid sovereign debt market in the world: the US Treasuries and more specifically the 10 years T-Note. A brand new chapter which could be called : Disappointed hopes of high volatilities
Disappointed hopes of high volatilities.
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