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... IS SETTING HIGH MARKET VOLATILITY ...<br />
S&P500, % - IMPLIED VOLATILITY INDEX<br />
40<br />
35<br />
30<br />
Canada CP<br />
liquidity squeeze<br />
Northern<br />
Rock warning<br />
and bailout<br />
Spreading of US<br />
recessionary fears &<br />
FED unexpected 75 bp<br />
rate cut<br />
Lehman Brothers<br />
default, public<br />
intervention to support<br />
AIG, Merrill Lynch<br />
acquisition by BofA<br />
25<br />
20<br />
15<br />
10<br />
5<br />
Sachsen<br />
LB<br />
bailout<br />
UBS reports US$<br />
10 bn write-downs<br />
and BofA<br />
liquidates US$ 12<br />
bn cash fund<br />
Bear Sterns<br />
collapse and<br />
subsequent<br />
acquisition by<br />
JPMorgan<br />
Chase<br />
Freddie Mac and<br />
Fannie Mae plunge<br />
on capital concerns<br />
and subsequent<br />
government bail-out<br />
0<br />
01/05/07<br />
31/05/07<br />
30/06/07<br />
30/07/07<br />
29/08/07<br />
28/09/07<br />
28/10/07<br />
27/11/07<br />
27/12/07<br />
26/01/08<br />
25/02/08<br />
26/03/08<br />
25/04/08<br />
25/05/08<br />
24/06/08<br />
24/07/08<br />
23/08/08<br />
22/09/08<br />
3<br />
Source: Bloomberg