Chart of the Month

Think stocks are volatile? Take a look at bonds.


Interest Rate Volatility:

MOVE Index* Eyes Highest Monthly Close Since the Great Financial Crisis

2022.10 Prospector COTM_no title

  • Interest rates have risen to 15-year highs on parts of the Treasury curve
  • Short-end yields in particular have seen immense volatility
  • Well-positioned banks and financial institutions have potential to benefit from new rate regime

 

*The MOVE Index measures U.S. interest rate volatility by tracking movement in U.S. Treasury yield volatility implied by current prices of one-month over-the-counter options on 2-year, 5-year, 10-year and 30-year Treasuries.

Chart source:
https://www.tradingview.com/symbols/TVC-MOVE/

Supporting documentation:
Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
US Treasury Bond Yields: 2022 vs. 2021

 

The views described herein do not constitute investment advice, are not a guarantee of future performance, and are not intended as an offer or solicitation with respect to the purchase or sale of any security. Investing involves risk, including loss of principal. Investors should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. Please review the offering memorandum or prospectus of a Fund for a complete discussion of the Fund’s risks which include, but are not limited to: possible loss of principal amount invested; stock market risk; value risk; interest rate risk; income risk; credit risk; foreign securities risk; currency risk and derivatives risk.

Nothing contained herein constitutes investment, legal, tax, or other advice nor should be relied upon in making an investment or other decision. Any projections, outlooks or estimates contained herein are forward looking statements based upon specific assumptions and should not be construed as indicative of any actual events that have occurred or may occur. 

This site uses cookies to enhance your website experience. By subscribing to our Market Insights, you are agreeing to our use of cookies. See our cookie policy here