Volatility as we know it may be a thing of the past, according to the Bank for International Settlements. BIS stated in a recent report that from the middle of 2004 to March, sustained economic expansion coupled with low expansion as well as high levels of liquidity and efforts by central banks to reduce uncertainty brought on by policy changes and increased central bank transparency have contributed to a new era of low volatility across a wide swath of indicators including short- and long-term interest rates, exchange rates, corporate spread and stocks. The above-cited factors, together with stronger company balance sheets, institutional investors’ expanding role and better communication between central banks “have all contributed to enhancing investors’ ability to avoid shocks or to deal with them, pushing volatility down.” BIS suggests that since these changes are structural in nature, the effect on volatility may be permanent.