The Doom Loop Is Back: ‘VIX ETP Risk’ Hits All-Time High

The Doom Loop Is Back: ‘VIX ETP Risk’ Hits All-Time High

Guess what? The potential for VIX ETPs to tip the first domino on the way to triggering the dreaded feedback doom loop that starts with a panicked rebalance into a VIX spike and progresses to force vol. control funds and CTAs to deleverage into a falling market has never been higher. We've discussed this ad nauseam in these pages and you can review the entire series here (from most recent to oldest in descending order): The ‘Doom Loop’: How VIX ETPs Exacerbated Last Week’s Vol. Spike
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