Good read on *market stress* from GS:

“Our vol stress index closed the week registering 9 out of 10. Historically, readings of >9 have been buying opportunities, but this time ‘feels different’ as the increase in panic has not come with a decrease in spot prices.

Market is treating this episode as an ‘equity-specific’ and ‘model-specific’ problem, with little sign of panic in credit spreads, bond market volatility, or liquidity.

Without a clear risk-off catalyst to assign the increase in equity volatility to, there’s also no defined walk-back scenario to ‘fix’ the problem.

Single-stock volatility is unlikely to subside any time soon, question is how much of this stress will spill over into the index, and then impact wider macro and cross-asset markets.”