Market sentiment can be challenging to quantify, but financial analysts and traders have a powerful tool to help them gauge it: CME Group’s Volatility Index, or CVOL. This index is particularly useful ...

We have been convinced through our research that the purpose of risk management is to use all tools available in the markets to create more robust portfolios that can survive major shocks. In a recent ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Cierra Murry is an expert in banking, credit cards, investing, loans, mortgages ...

Bonds are popular fixed income investment instruments and are often regarded as bearing relatively low-risk burdens. While bonds are less volatile than other investments, they are not risk-free, ...

Bond convexity measures price sensitivity to interest rate changes in the secondary market. Positive convexity increases bond value as interest rates fall; negative does the opposite. Understanding ...

Ben opens with a rant on 2x bull ETFs riding hypey single names — the antithesis of risk management. Cem responds with his favorite metaphor: risk management is gas and brakes. In racing (and in ...

It has been a long time since we have had to worry about and think about the phenomenon of mortgage convexity and the effect that it can have on the bond market. But with 10-year interest rates up ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Trend followers are enjoying their best returns ever, but the good times could be masking the strategy’s fading qualities as a tail-risk hedge, according to new research. An index of leading ...

This is a preview. Log in through your library . Abstract This paper investigates the nonparametric analysis of technology under non-convexity. The analysis extends two approaches now commonly used in ...

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Negative convexity is something which has been mentioned on this blog before. It sounds dramatic, not to ...

CVOL is a suite of implied volatility indices measuring 30-day forward volatility across all option strike prices of key futures markets. It’s based on a simple variance methodology to measure the ...