VIX Index shows market expectations of 30-day equity market volatility.

Short-term hedging costs have climbed with VIX levels spiking in April,
indicating more uncertainty in the market.

NOT FOR CLIENT USE

The VIX term chart gives the view of expected volatility as measured by trading
in current volatility futures contracts. Hedging costs remain elevated in longer-
dated contracts compared to the 30-day VIX Index. However there is concern
in the short term with a noted spike on the left of the chart, possibly related to
the French elections next week.

NOT FOR CLIENT USE

 The trends of historic and implied volatility remain low but have began to climb
in the past few weeks. Implied volatility remains a premium to actual volatility as
an anticipated equity market pull back has not yet materialized. All eyes are on
the uncertain political environment in the US as well as across the globe.

NOT FOR CLIENT USE