RAI
Risk Aversion Index: Stayed On “Lower Risk” Signal
While we are aware of how far markets have moved in the few short weeks since the election, we continue to maintain a Favorable view toward spread products within fixed income.
Risk Aversion Index: Stayed On “Lower Risk” Signal
With the Fed’s December hike priced in, we maintain a Favorable view toward spread products within fixed income.
Risk Aversion Index: Stayed On “Lower Risk” Signal
We maintain our favorable view towards spread products within fixed income, but given the election and the Fed hike risk, caution is warranted.
Risk Aversion Index—Moved Up; A New “Higher Risk” Signal
We are aware of the oversold condition in oil but we expect volatility to remain high in the near term. We maintain a defensive stance towards credits at this point.
Risk Aversion Index—Moved Up But Stayed On “Lower Risk” Signal
Despite the mechanical “Lower Risk” signal, we are clearly in a risk-off environment. We recommend a defensive stance towards credits at this point.
Risk Aversion Index - Stayed On “Lower Risk” Signal
Fewer uncertainties surrounding the Fed’s policy decision probably helped, but the renewed sell-off in oil is a big concern for all credit classes. We recommend caution and a neutral stance towards credits at this juncture.
Risk Aversion Index— A New “Lower Risk” Signal
We are moving to a more constructive stance towards credits within the Fixed Income space.
Risk Aversion Index— Moved Higher, Stayed On “Higher Risk” Signal
It’s too early to move back into credits; we recommend a defensive stance within the Fixed Income space.
Risk Aversion Index— Moved Higher, Stayed On “Higher Risk” Signal
We expect volatility to persist in the near term as the market deals with uncertainties surrounding the Fed rate hike decision and China. A defensive stance is recommended within the fixed income space.
Re-Deflation—RAI Flashes New “Higher Risk” Signal
The re-deflation theme has been so prevalent that it triggered a new “Higher Risk” signal in our Risk Aversion Index. There are significant negative implications for all risky assets.
Risk Aversion Index—Increased But Stayed On “Lower Risk” Signal
However, we recommend a defensive bias within the fixed income space for the time being.
Risk Aversion Index—Stayed On “Lower Risk” Signal
While we acknowledge the volatile market environment, we still favor credits within the fixed income space.
Risk Aversion Index—New Higher Risk Signal
Despite strong performance for stocks, the RAI ended the year at its highest level. While we are in a very favorable seasonal window, we recommend taking a more defensive stance for now.
Risk Aversion Index Fell Sharply—New “Lower Risk” Signal
The dramatic turn-around in risk appetite triggered a new “Lower Risk” signal. It also marks the beginning of a very favorable seasonal window.