Market volatility does exist! After a year of all-time low volatility and booming stock and bond markets, investors received a wake-up call in February when equity indexes around the globe sold off by as much as 10% in a matter of days.

Performance in the bond market in the first half of 2017 was characterized by a lack of inflation, optimism about economic growth reflected in both equity markets and credit spreads and a seemingly insatiable demand for yield.