The UK markets since Monte Carlo

Since the Monte Carlo conference at the end of June, global credit and equity markets have been extr...

Since the Monte Carlo conference at the end of June, global credit and equity markets have been extremely volatile, and the global financial system has experienced a number of dramatic shocks. First, the US sub-prime crisis erupted, leading to a breakdown of credit markets. This, in turn, led to a liquidity crisis in most of Europe, and with the collapse of Northern Rock, the UK has not been able to go unscathed. Consequently, the VIX index (often referred to as the 'fear index') has rallied, financials been killed and risky assets have underperformed. More importantly, from our point of ...