Rising Stock-Bond Volatility Correlation Is Undermining Global Risk Models | Council on Foreign Relations (opens in new tab)

The next shock to stock markets may also be a shock to bond markets—and that combination, once rare, is becoming the norm. A structural shift in the relationship between equity and fixed-income volatility has quietly undermined one of the foundational assumptions of financial risk management, with consequences that regulators and policymakers have yet to fully […]