Investors look to profit from record low equity volatility

Volatility is trading at record lows globally and especially in Asia. Why is it so low and does it represent an opportunity for volatility funds to buy at discounted levels or is something more sinister at play?

A hedge fund volatility trader compares the current state of the volatility markets to a "reduced to clear" sign at a supermarket: at first glance it appears heavily discounted but on further inspection it's not necessarily good value.

Globally, volatility is at multi-year lows across equity indexes, which could be interpreted in a positive light that six years on since the financial crisis the economic recovery has taken hold, the eurozone poses a reduced risk, bank balance sheets are in better