Another day, another all-time low for volatility-linked exchange traded products such as iPath S&P 500 VIX Short Term Futures ETN (NYSEArca: VXX) and VelocityShares Daily 2x VIX Short-Term ETN (NYSEArca: TVIX).
TVIX was off 3% Wednesday morning while the CBOE Volatility Index, or VIX, fell to its lowest level since June 20, 2007, according to Bespoke Investment Group.
“The recent significant fall in implicit volatilities in recent days, means that long date volatilities (1 year) of most significant equity indices are now testing the frontier level between the post-crisis regime and the ultra low regime of 2004-2007,” according to the Macronomics blog.
The CBOE Volatility Index fell a record 39% last week.