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Lisa Abramowicz, journalist and co-host on Bloomberg TV/Radio, observes a disconnect between market volatility warnings and current volatility measures.
Despite advisors warning of more turbulence ahead and markets feeling increasingly unstable, the VIX—tracking implied volatility in the S&P 500—has dropped to its lowest point since January. Implied bond-market volatility also sits nearly 30% below its five-year average.
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Abramowicz has recently highlighted sector-specific stress as U.S. investment-grade bonds from tech firms fell 2.2% last month while yields reached highs not seen since late 2023, as reported in her coverage of tech bond losses. Separately, she noted shifts in Chinese markets with potential price increases for Chinese LLMs as investors focus on profitability. These developments offer further context to current discussions of market risk and volatility.