Are Autocallables Misleading Markets Into Low Volatility?
Thursday, 7 March 2024, 12:00
Autocallables' Impact on Market Volatility
Stock markets are experiencing a period of low volatility, which may be influenced by the increasing popularity of autocallables and structured products. This phenomenon could be creating a deceptive sense of stability among investors.
Rising Popularity of Autocallables
The boom in autocallables and similar structured products is contributing to the current market conditions, potentially masking the actual levels of risk present in the financial system.
- Market Stability: Autocallables are impacting the perceived stability of the markets.
- Investor Perception: The calmness in markets might not accurately represent the underlying risks.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.