Making Sense of Recent Spike in Volatility

Useful charts and data points gathered together by Morgan Stanley’s strategists in a report dated Feb 11. Their understanding is that the rise in real yields has been the real trigger of the spike in market volatility.

Source: Morgan Stanley
Source: Morgan Stanley

Putting things in perspective: how equities react when yields rise (well it depends on the macro backdrop).

Source: Morgan Stanley

Key point in historical perspective: are we in a 1987 type of environment? A question that has already been raised in the markets recently.

Source: Morgan Stanley