Friday, June 27, 2014

Pimco runs risks in turning up the ‘vol’ - FT.com

Pimco runs risks in turning up the ‘vol’



Nice overview from the F-Times of: risk to increase volatility specifically and the way that crowded trades can be build by conventions that become oversold.



"In fact, so many different kinds of investors are now “selling volatility” that BlackRock’s Dennis Stattman worried at the same conference that it had become a “crowded trade”. Sceptics worry these new players might be selling flood insurance on the cheap, just before a deluge."



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