I Like My Term Structures Kinky

I've talked quite a bit about how the US equity market is grossly mispricing political risk. As a friendly reminder, last month was the third calmest January in history as measured by average VIX level and realized volatility was the fifth lowest on record. Essentially, US stocks are pricing in no near-term risk from elections in the Netherlands, France, and Germany and seem entirely blind to policy implementation risk here at home. The discrepancy in how the VSTOXX is pricing French electio