Equity Selloff Could Spread to Other Markets, Says Algebris' Gallo

The video discusses the volatility trade from 2017, focusing on the current market sell-off, primarily in equity markets. It highlights the impact of central bank policies, such as QE, on hedging and risk-free assets. The discussion extends to cross asset volatility, with a focus on credit spreads and the vulnerability of interest and credit markets. The role of central banks like the ECB and BOJ in supporting bond yields is also examined.

What factors have contributed to the current sell-off in equity markets?

How does the reversal of QE affect the availability of hedging assets?

What indicators should be monitored to assess the next potential market downturn?

In what ways have companies increased their funding costs over the last decade?

What role do central banks like the ECB and BOJ play in the current financial conditions?