Stocks Saw Billions In Systematic Selling During Tuesday Rout

Systematic flows may have weighed on equities early this week, as acute Fed fears pushed up bond yields and undermined risk sentiment. Subdued markets, low realized vol and a generally placid environment are necessary conditions for various iterations of virtuous, mechanical feedback loops to take hold. Persistent policy angst isn't exactly conducive to calm waters. Although dispersion and churn beneath the surface can have a dampening effect to the extent winners (e.g., energy) offset losers