Stefan Wredenborg
Macro Prud Policy&Financial Stability
- Current Position
-
Adviser
- Fields of interest
-
Financial Economics,International Economics
- Education
- 2000-2002
Master of Science in Business Administration and Economics, Stockholm University
- 1997-2000
Bachelor of Science in Business Administration and Economics, Stockholm University
- Professional experience
- 2023-
Adviser, Directorate General Macroprudential Policy and Financial Stability, European Central Bank
- 2014-2023
Senior Team Lead - Financial Stability/Principal Financial Stability Expert, Directorate General Macroprudential Policy and Financial Stability, European Central Bank
- 2006-2014
Senior Financial Stability Expert / Financial Stability Expert, Directorate General Macroprudential Policy and Financial Stability, European Central Bank
- 2004-2006
Analyst, Directorate Financial Stability and Supervision, European Central Bank
- 2000-2004
Analyst, Directorate General International and European Relations, European Central Bank
- 1999-2000
Research Assistant, Research Department, Sveriges Rikbank
- 1998-1999
Statistics Officer, Monetary Policy Department, Sveriges Rikbank
- 16 May 2024
- FINANCIAL STABILITY REVIEW - BOXFinancial Stability Review Issue 1, 2024Details
- Abstract
- Implied equity market volatility has been low in recent quarters, in both absolute and relative terms, despite tighter monetary policy, rising geopolitical tensions and a balance of risks to economic growth tilted to the downside. This box discusses several factors that may have contributed to the low levels of implied equity market volatility. It describes how progress in bringing inflation down without a deep economic contraction has supported investor optimism and highlights how increasingly common short volatility strategies may also have suppressed implied equity market volatility. The box then examines the divergence of implied equity market volatility from the implied volatility in interest rate markets and discusses possible implications for financial stability. Elevated implied interest rate market volatility could point to downside macro-financial risks that seem not fully priced in by equity investors. Subdued implied equity market volatility – despite broader uncertainties – might suggest an underestimation of risks in equity markets and excessive risk-taking. Consequently, adverse economic surprises or geopolitical shocks could lead to significant market corrections. Large exposures in volatility instruments could, in turn, increase the likelihood of a disorderly correction.
- JEL Code
- G10 : Financial Economics→General Financial Markets→General
G11 : Financial Economics→General Financial Markets→Portfolio Choice, Investment Decisions
G12 : Financial Economics→General Financial Markets→Asset Pricing, Trading Volume, Bond Interest Rates
G15 : Financial Economics→General Financial Markets→International Financial Markets
- 30 July 2004
- OCCASIONAL PAPER SERIES - No. 18Details
- Abstract
- This paper analyses the main features of the market for euro-denominated bonds issued by non-euro area residents on the basis of a new database. It shows that large private corporations from mature economies have contributed significantly to the internationalisation of the euro since 1999, more than sovereigns in transition and emerging economies, whose part was initially expected to be stronger. It confirms that the euro