This podcast episode critically examines the recent market selloff, challenging the common narrative that it was primarily due to a yen carry unwind; instead, it highlights a more profound shift in investor sentiment driven by fears of a hard landing in the economy. Charlie discusses the unprecedented nature of the recent volatility and its impact on market stability, emphasizing the need for a calm environment to facilitate recovery, while also noting the challenges posed by short vol exposure and dealers' diminished risk capacity.
