The VIX or Chicago Board Options Exchange’s Volatility Index rose from 18.5 on March 2 to 26.5 on March 13. But at the close of the US markets on March 15, the VIX was still hovering around 26.
If the VIX is anything to go by, the market is nowhere as worried about the failure of three mid-sized US banks — Silicon Valley Bank, Signature Bank and Silvergate Bank — as it was when Lehman Brothers collapsed in 2008.
Even the collapse in Credit Suisse Group’s share price between March 13–15 left the VIX, often referred to as the Fear Index and a popular measure of the stock market’s expectation of volatility based on S&P 500 index options, unmoved.
