Unleash The "Henry": VIX Compression On

Tyler Durden's picture

With the cash bond market closed, futures and ETFs are on their algo-driven own and sure enough VIX compression is driving the show. Despite a HY credit market that seems a little less exuberant, it appears the powers that be have unleashed the 'Henry' once again... but rest assured those hedges are not being lifted - merely rolled out past the February debt-ceiling deadline.

 

It was all looking relatively uniform for the first 45 minutes but once HY credit decided that all was not well, it appears the 'Henry' was unleashed on the VIX complex...

 


 

And while spot VIX is the driving factor - it appears all that is really ocurring is that hedges are being rolled aggressivley out to the post-debt-ceiling maturities...