The Borrow Smart Conversation

Understand The MOVE Index and Interest Rates New Normal


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Harley Bassman’s Convexity Maven publication is a commentary on the bond market and macroeconomics, particularly focusing on the relationship between interest rate options and the 2024 US Presidential Election. The author analyzes the MOVE Index, a measure of implied volatility in the bond market, and how its recent jump signifies a significant level of uncertainty surrounding the election outcome. Bassman draws parallels to past events like the 1991 Gulf War to illustrate similar market behavior during times of "known unknowns," where the risk is clear but the result is uncertain. He concludes by suggesting that despite the elevated volatility, the market is on a path back to normalcy, though the author cautions investors to remain aware of potential risks and consider appropriate strategies.

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The Borrow Smart ConversationBy The Borrow Smart Conversation