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Actionable news in BAC: BANK OF AMERICA CORPORATION,

Bank of America: The Hunt for Yield May Be Reaching an Inflection Point

No trade is safe from the great search for yield, not even volatility.

Research by Bank of America Merrill Lynch shows there's been a steep drop-off in exposure to securities that gauge expectations of volatility, as investors sell a VIX index that's already at depressed levels to enhance yield. The market is at its lowest VIX exposure as far back as their data goes, they say, meaning there's a brewing risk of a sharp correction.

"Selling volatility to enhance yield is now at an extreme level, with net speculative VIX exposure at...


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