*CORRECTION adding company....>

GLOBAL MARKET/OPINION: *CORRECTION adding company of authors. Michael Schumacher

and Boris Rjavinski at Wells Fargo have introduced a new cross-market all

volatility based upon realised volatility. The new index incorporates equities,

fixed income, commodities and FX vols.

- What they find is that "volatility is low, but plumbed even lower depths in

2014 and 2006". 

- They also find that that there is a nuanced relationship between vol and

central bank balance sheets "Vol generally has fallen while central banks have

been in quantitative easing mode, but the biggest increases in balance sheets

have not consistently been accompanied by hefty drops in vol". They point out

declining balance sheets haven't always created higher vols but they believe

that volatility will rise when the Fed starts the balance sheet unwind.

- Finally, they point out that a very strong relationship between financial

conditions indicators and their new Market Volatility Index.