With Volatility Approaching Lows, Credit Suisse Says Hedge Now

Could the VIX index have found a new normal and reverted back to a familiar trading range? A recent Credit Suisse report suggests that volatility across the term structure is beginning to normalize as investors shake off doomsday concerns from late August and September. Yet don't be complaisant, the report advises, as volatility could be on the horizon.

Volatility skew normalizes as market fears subside

Perhaps the normalization can best be seen in the easing of volatility skew, which fell from the 64^th percentile high, indicating significant near term concern, to the 28^th percentile low last week. Volatility skew measures the differential between at the...