Low Volatility Brings High Leverage to Markets

The video discusses the impact of low volatility on market fragility, highlighting the risks fund managers face. It examines market reactions to events like Brexit, emphasizing the role of central bank support in maintaining stability. The discussion extends to deleveraging trends in global equities and the influence of volatility on quant strategies, stressing the potential for feedback loops that exacerbate market sell-offs.

In what ways did the Brexit scenario affect equity and bond markets according to the discussion?

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What factors contribute to the selling pressure in the market as mentioned in the text?

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