Risk markets have stabilized to start the week, though many analysts we speak to say that the good old days of low volatility and easy money are drawing to a close. Get ready for more volatility. The team at Quant Insight have put an interesting note (one of which we highlight below) which look at shifts in regime after the events of the past couple of week. The VIX, using their model, is now in regime (meaning macro is a more important and significant driver), while gold has fallen out of regime. Qi highlight that as these regimes transition there is likely to be increased volatility as a result. Last week, all the talk was whether a bond sell off might send equity markets into a death spiral, as the risk parity trade unraveled. Research from Walbrook Economics and the Pennock Idea Hub below looks to quell some of these concerns, and to isolate the real drivers of rates, and this seems to have been borne out in the price action, so far.