AllNews - Elections and diversification introduce the eventuality of Black Swan risk
"This Wednesday, June 19th, AllNews published an article written by Alexandre RYO, Head of Alternative & Overlay Solutions at Ellipsis AM, with a focus on the surprise of the European elections and the dissolution of the French National Assembly, which brings back the risk of an extreme event that the markets did not anticipate and that is unknown (Black Swan).
"French 5-year yields have diverged sharply from German 5-year yields, showing that investors are taking less risk in the face of French risk."
Extract:
"Since Monday 10 June and the start of a period of uncertainty in France (until 7 July), the French equity and bond markets have suffered more than their European counterparts. In the face of this, the reaction on volatility still seems limited at the time of writing."
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