Quants Warn Trading Costs May Rise on Reopening Volatility



Gregor Stuart Hunter | Bloomberg

Quantitative investors and strategists say a reopening in economies across the globe could trigger renewed volatility in financial markets, increasing trading costs and weighing on portfolio returns.

Anchorage, Alaska-based McKinley Capital Management is worried that a fresh bout of turbulence may emerge during the summer as economies reopen and companies resume issuing guidance. Bid-ask spreads could widen as a result.

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