For years, market watchers and Fed skeptics had warned that the record low volatility “blanket” that has fallen like a pall over the comatose market was the result of Fed actions, both direct or indirect. And while they mostly spoke metaphorically (although back in 2012 we observed a distinct shift in the VIX futs when the current head of the Fed’s trading desk, Simon Potter, replaced Brian Sack), we now have explicit confirmation that the Fed’s “short vol” position appears to be rather literal.

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