What Caused the Volatility “Volmageddon” on 5-Feb-2018?
In the afternoon of February 5th, 2018, what looked like a bad day for a group of high flying volatility-based products turned into a devastating decline. Four factors combined to ruin their day: A Flawed Architecture Relying on the Past to Predict the Future Billions Under Management A Record-Breaking VIX® spike Twenty-five minutes before the close of the New York Stock exchange on February 5th, …
