Market Crash In Volatility Was “Technical” In Nature, No Clear market Villain Say Bank Analysts

As one of the worst market carnages in history unfolds, and the long-awaited short volatility trade collapses, the markets mean reverted early Tuesday morning and engaged in wild but balancing behavior. That mean reversion can be seen in the unwinding of the notorious Credit Suisse “XIV” short volatility exchange traded note. But just how jarring has the market volatility really been? A Barclays report says the market crash volatility does not accurately reflect fear and was more technical in nature, while Goldman Sachs agrees with the technical causation.

The fear-gauge acted on "technical" trading that moved the market, not fundamentals

Credit Suisse joins a growing number of short volatility exchange traded funds on...