Low volatility has affected the market, says Calyon's Lefort
FX WEEK CONGRESS
Lefort said volatility has collapsed across FX, equity, interest rates, credit and commodities, losing 2% in the last year. She said because of this, clients are looking for products that offer them more protection and are easier to manage from a risk perspective.
New products that Lefort said have been successful include structured products inspired by credit or interest rates, correlation products, volatility related products and new kinds of digital products. "Volatility of some crosses, even on the majors, has remained surprisingly stable on a bearish volatility context," she said, adding multi-currency digitals where the de-correlation between various currency pairs is used to reduce the price of the digital have also proved successful.
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