Citigroup Traders Are Dealing With the Highest Volatility Since 2008
Citigroup Traders Are Dealing With the Highest Volatility Since 2008
(Bloomberg) -- Citigroup Inc. Chief Executive Officer Jane Fraser said trading desks are dealing with volatility levels that markets haven’t seen in more than a decade.
Traders are coping with inflation that’s at its highest level in a generation and investors who are increasingly worried about the likelihood of a global recession, Fraser said Monday at the Milken Institute Global Conference in Beverly Hills, California. As an example of volatility, she mentioned trading on Friday, when bonds sold off at the same time as equities. Normally, the two have an inverse relationship.
“I remember the ’70s and ’80s, and I don’t remember days like that, and some of this is just very odd dynamics around supply and demand,” Fraser said. “When volatility is 2008 or 2009 levels, that’s telling you that no one knows what this is going to be.”
Markets have been jittery in the aftermath of Russia’s invasion of Ukraine, which has disrupted supply chains and created uncertainty around the world. Fears of an economic slowdown, persistently high inflation and expectations for the biggest Federal Reserve rate hike in two decades have weighed on risk appetite, and April was the worst month in more than two years for U.S. equities.
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