Oil volatility has literally exploded in recent weeks as investors pile into protection and headline-driven shocks spark almost unprecedented swings in the ultimate raw material. While FX volatility has been draually picking up in the last 6 weeks – now at 2014 highs, rates and equity market volatilities have shrugged this off… until last week. While rates volatility is stable, equity vol picked up significantly as ‘business risk’ picks up once again – as evidenced by the contagious weakness in high-yield credit markets.