Six Sanity Checks For A Seemingly Virtuous VIX

As short-term volatility leaks lower and lower and more and more talking heads use this 'risk-index' as reason to be longer and longer stocks, we thought it might be useful to get some context on recent movements in volatility-related factors. Whether its seasonality, volatility term structure, or the high-yield credit market, VIX looks low (underpricing short-term risk). Perhaps it is a plethora of new-year-new-book covered call euphoria or just belief in the LTRO firewall fixing

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