Natural volatility
Earlier this year, while reinsurance risk-takers were being buffeted by winter storm losses and rising wildfire and hurricane claims, another niche corner of the financial markets was experiencing its own "vol-mageddon".
The Financial Times called it a "volatility virus" that had infected markets. The collapse of several minor hedge funds trading in derivative products connected to financial market volatility levels produced a broader stock market slump.
The FT argued that these volatility products were creating "a potentially dangerous feedback loop&...
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