$2 Trillion of Short Vol Trades: Why The Coming Crash Will Be Like 1987...But Worse

This is all great as long as volatility is low or dropping, as long as markets are stable. But, in the event that we have a reversal in this, there’s two trillion dollars of equity exposure that self-reflexive-driving lower vol can reverse in a quite violent way. And this is just equity vol, mind you:

 

 

https://www.zerohedge.com/news/2018-01-28/chris-cole-coming-crash-will-be-1987-worse

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