DSKE - Transports Weekly Snapshot - VIX Returns To Correlation With High Yield Bond Spreads
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For the seventh week of 2018 on February 16th, both transports and broader market indices improved strongly. The increase in equity market volatility and interest rates has been written about extensively over the past few weeks with some claiming a direct inverse relationship and further downward pressure on equities as a result. I am in the camp of focusing on high yield bond spreads and the close correlation with the CBOE Volatility Index (VIX). As such, recent impacts on equities are likely to remain temporal at best, with 2018 still offering another