RBC's Silverman Doesn't See Volatility Blowup in Stocks

The transcript discusses the relationship between tech stocks and market dynamics, highlighting the impact of mega-cap tech on market volatility. It explores the underperformance of equity skew in derivatives markets and the relative inexpensiveness of downside options. The conversation also compares volatility across equities, FX, and bonds, noting the historical context of rate suppression and its effects on current market conditions.

What is the impact of recent earnings reports on mega-cap tech stocks?

• They have increased the market weight of tech stocks.

• They have doubled the market weight of tech stocks.

• They have decreased the market weight of tech stocks.

• They have had no impact on the market weight of tech stocks.

What has been a core theme in the derivatives market towards the year-end?

• Equity skew has outperformed.

• Equity skew has underperformed.

• Equity skew has been unpredictable.

• Equity skew has remained stable.

Why are longer tenor options considered beneficial?

• They provide better returns.

• They are less risky.

• They offer more flexibility.

• They are more expensive.

How does the volatility in FX and bond markets compare to equity markets?

• FX and bond markets have no volatility.

• FX and bond markets have higher volatility.

• FX and bond markets have similar volatility.

• FX and bond markets have lower volatility.

What historical factor has influenced current rate volatility?

• 10 years of declining rates.

• 10 years of stable rates.

• 10 years of rate hikes.

• 10 years of rate suppression.