Morten Steinsland, head of fixed income at Alfred Berg in Oslo, has been in the fixed income markets for three decades but the other day he saw the scariest chart he's ever seen.
The chart he's looking at is the MOVE index, which measures Treasury volatility. And the frightening thing about it is that there's no volatility.
"This is the scariest graph, I see," he said in a presentation in Oslo on Wednesday. "There's really no risk left in the world."
Steinsland, who oversees 51 billion kroner ($6.6 billion) in bonds, is blaming central banks for the disappearance of any semblance of risk.
"They control liquidity supply, short and long rates," he said in interview. "They have taken out the volatility in the markets. As times goes on, one may think that it's the way it's supposed to be. But that's not certain."
That means that "everything out there" is under pricing risk, according to Steinsland.
