Market wonders where volatility has gone

Has the investment climate really been that dull? In the last four months, average spreads on the iB...

Has the investment climate really been that dull? In the last four months, average spreads on the iBoxx All Maturities investment grade index have moved within a three basis point range, or just 0.03%. It seems sterling credit investors could be forgiven for thinking volatility has been vanquished. However, dull is not the adjective I would choose. The monetary policy committee cut base rates by 25bp in August. The FTSE 100 recently hit a four-year high. The US Fed has raised rates six times this year. The oil price broke through $70 a barrel, causing worrying hikes in headline inflation. ...