Apr 6, 2018 - Economy & Business

Investors bet on volatility

Photo by Bryan R. Smith / AFP via Getty Images

"Now that stocks, bonds and other assets are moving in strange ways, many investors view continued volatility as one of the year’s most dependable bets," the Wall Street Journal reports on A1:

  • "The Cboe index, known as the VIX, is up 72% since the start of the year."
  • Hedge funds and asset managers are "buying futures contracts pegged to the VIX, a profitable bet if volatility continues to rise."
  • Goldman Sachs wrote in an April 2 report: "Hedge what you fear."

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Dion Rabouin, author of Markets
13 mins ago - Economy & Business

Wall Street still prefers bonds

Illustration: Aïda Amer/Axios. Photo: Sunset Boulevard/Getty Contributor

Investors' return on U.S. corporate bonds has been falling since its August peak, but buying has only accelerated, especially in investment grade bonds that are offering historically low yields.

The state of play: Since hitting its 2020 high on Aug. 4, the benchmark Bloomberg Barclays U.S. bond aggregate has delivered a -2.2% return. (For comparison, the S&P 500 has gained 3.9% during the same time period.)

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Barak Ravid, author of from Tel Aviv
2 hours ago - World

U.S.-Israeli delegation secretly visits Sudan

Photo: Artur Widak/NurPhoto via Getty Images

A joint U.S.-Israeli delegation traveled secretly on Wednesday to Sudan for talks on a possible announcement on "ending the state of belligerence" between the countries that could be released in the next few days, sources briefed on the trip told me.

The big picture: President Trump announced earlier this week he is ready to remove Sudan from the U.S. state sponsors of terrorism list once Sudan pays $335 million in compensation to American terror victims.

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Felix Salmon, author of Capital
2 hours ago - Economy & Business

A white-collar crime crackdown

Illustration: Eniola Odetunde/Axios

America has waited a decade for an aggressive government crackdown on white-collar crime. Now, just before the election, and in the middle of a bull market, it has arrived.

Why it matters: When times are good, investors become more trusting and more greedy. That makes them more likely to put their money into fraudulent or criminal enterprises.

  • After a decade-long bull market, there is no shortage of those frauds to prosecute.
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