Tuesday, November 18, 2008
The bond market is feeling better these days, with swap spreads, the TED spread and implied volatility down significantly from their recent highs, but the stock market is still in the grips of a paralyzing fear, as this chart reminds us. This chart divides the VIX index (a measure of fear) by the yield on the 10-year Treasury note (a measure of the demand for safety). The bigger the ratio, the worse the panic.
Posted by Scott Grannis at 12:35 PM