Funds Trapped In ‘Doom Loop’ Amid ‘Spot Up, Vol Up’ Trade

Some unlucky folks on the buy-side might be trapped in a "doom loop" with little choice but to perpetuate their own suffering. US markets exhibited the feared "SUVU" dynamic on Thursday, which can be indicative of instability depending on the circumstances. The "spot up, vol up" phenomenon contributed to a "substantial negative feedback loop problem within underlyings" for the Long-Short crowd, Nomura's Charlie McElligott wrote Friday. Last year's winners (so, low vol names, defensives and qu