Low Vol And Massive Stock Buybacks—The Toxic Nexus

This tremendous demand for equities from largely price-indescriminate corporations has had a knock-on effect of crushing equity volatility: As Christopher Cole, the well-known Artemis hedge fund manager  who has been rightly warning that volatility has been artificially and dangerously depressed for a while, warned “Stock buybacks are in effect creating low volatility,” adding that “Share buybacks are like a giant synthetic short-volatility position.”