Photographer: Michael Nagle/Bloomberg

A Sell-Off Pressure 'Larger Than Brexit' Imperils One of Wall Street's Hottest Trades

Danger for volatility-targeting portfolios such as risk-parity funds.

The synchronized slide in global markets is set to unleash a wave of forced deleveraging in the coming days among volatility-targeting portfolios, such as risk-parity funds, that might exacerbate the market sell-off, say analysts.

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