JP Morgan Chase & Co./Bloomberg
The meeting comes after US equities suffered one of the deepest selloffs of the year on 14 August and a key portion of the US Treasury yield curve inverted for the first time in 12 years, stoking fears of a recession.
Monday 19, August 2019
JPMorgan Chase & Co. plans to host a conference call this week to help clients make sense of markets after a week of wild swings for stocks and bonds, reported Bloomberg.
JPMorgan strategists led by Marko Kolanovic, said, “In the wake of a rather violent decline in yields, inversion of the curve, and volatility in equity markets, we consider the role of poor liquidity and systematic flows in exacerbating these market moves.”
Kolanovic and strategist Munier Salem plan to address the bout of unusual illiquidity in US equities and discuss the extent to which high-frequency trading is to blame for drops in market depth, according to the invitation.
Joshua Younger, a fixed-income strategist, will lead a discussion on convexity hedging in rate markets.
The bank said last week that measures of market depth in US equities, Treasuries and currencies relative to the rest of the year have fallen below the average since 2010--a sign that market players do not have as much capacity to absorb the trade-driven trends sweeping assets.
Some Wall Street trading desks have warned that the sudden rupture of volatility could cause quant-driven funds to dump billions of dollars of stocks.