​VSTOXX/VIX Spread Finds Traction Amid Technical, Macro Factors

Portfolio managers are increasingly scoping opportunities in the VSTOXX/VIX spread with the term structure in the former index largely flat versus anupward slopingterm structure in the latter index. Positioning is being driven by a consensus that short-term vol will be suppressed during the Summer as central banks adopt a more dovish stance with spikes occurring around macro events and the evolution of Brexit.