# VIX below 30 for the first time since Lehmans



## Bushman (21 May 2009)

See below re the VIX index - so volatility seems to be reducing which must be good for forming a bottom in the US. A 'pre-Lehman' reading must mean that traders are starting to feel that the systemic risk posed by Lehman/AIG has been contained. From that we should see credit markets continue to stabilise as banks lend to each other, leading to a return of function to that market. 

Another green shoot or is it going to a false dawn a la housing starts? 

From the Lonsec stock brief: 

'The VIX, the benchmark index for U.S. stock options, added 0.8 percent to 29.03 today. The gauge *slipped below 30 *for the first time in eight months yesterday, as traders paid less for insurance against declines in the S&P 500. *The last close below yesterday’s VIX level was 25.66 on Sept. 12, the session before Lehman Brothers Holdings Inc. filed for bankruptcy*. '


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