​Daily Wrap – Insurance Firms Eye Vol Control, Haworth On Equity Pricing

Insurance firms are looking to add more volatility control underlyings to their suites of fixed index annuities, as fear of a further market correction spreads among end clients. A sales official at a sellside firm in New York told EQDerivatives banks and insurance firms are very active in vol control products, pushing them into their distribution networks. The firms are also weighing options on vol control funds over indices. In our latest buyside commentary, 36 South’s Jerry Haworth asks whether equity prices are an accurate reflection of economic reality or merely a government sponsored showcase following the performance of the equity markets in August.