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VIX Signals 'We've Learned to Look Through Geopolitics,' Says Amy Wu Silverman
Posted
April 17, 2026
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April 17, 2026
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6:33Now PlayingAmy Wu Silverman, Head of Derivatives Strategy at RBC Capital Markets, discusses falling volatility and hedging opportunities as the VIX hits its lowest level in more than two months.
The Cboe Volatility Index dropped to its lowest level in more than two months as investors cheered a ceasefire in Lebanon and Iran opening the Straight of Hormuz.
Those credit investors who gambled on higher-yielding corporate bonds in the midst of the Iran war are looking increasingly vindicated as markets rebound on hopes of a lasting truce.
The decision to buy bonds as Iran and the US exchanged missile-fire was always a high-stakes one. It required a belief that a spike in overall yields on the back of rising government borrowing costs would be enough of a buffer against a prolonged energy shock and the threat of inflation.
The trade to lock-in higher levels of income is now paying off for portfolio managers on both sides of the Atlantic. Index returns for investment-grade bonds denominated in euros — a yardstick of the market’s overall performance — are heading for their best month in more than a year while junk bonds in the single currency haven’t gained this much since 2023. There have been similar swings to positive from negative in the US.
“Over March we’ve seen a pretty significant repricing,” said Olivier Monnoyeur, Portfolio Manager, Euro high yield credit fund, BNP Paribas Asset Management. “That’s the key shift — the entry point is now more attractive.”
Higher bond yields give investors more room for returns: they provide stronger income and the potential for price gains if yields fall from their peaks. For those who expected the broader market impact of the conflict to be limited, the recent selloff opened a buying window.
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