The Flows Behind Last Week’s Stock Selloff

Surprise! Last week's selloff in US equities, the worst since March, was in no small part attributable to the not-at-all-virtuous feedback loop between hedging flows (as spot careened through the gamma flip line and VIX futures rose through short strikes) and systematic de-leveraging. Obviously, there was a fundamental catalyst: The new FOMC dot plot and the "higher for longer" message it conveyed. But the acceleration lower for equities (as distinct from the impetus for the move) came courtesy

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