Following a sustained period of relatively calm markets, volatility has increased over the last month.
The exact cause is difficult to determine as is often the case when we experience such moves. There have been some candidates cited including the significant sell-off in oil, US/China trade tensions, the imminent end to the ECB QE programme and of course the 'B' word. Trade wars: Should you pick a side? Whatever the reason, the price action in some markets has been relatively severe in magnitude and speed - including credit bond markets. Moves like this remind us of potential liquidity issues in credit markets and the implications of fund outflows. We think the supply/demand dynam...
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