Sun, Sep 24, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

EUREX sector futures volumes indicate revival of Artificial Risk Transfer

Thursday, August 24, 2017

Komfie Manalo, Opalesque Asia:

Over the last months Eurex could witness through its sector futures portfolio that a pronounced sector rotation has taken place, said Markus-Alexander Flesch, head of Global Sales Equity and Index Derivatives at Eurex.

Speaking at the latest Opalesque 2017 Nordic Roundtable, Flesh said that the ART (Artificial Risk Transfer) has seen a revival that has brought some of the more specialized Eurex products to the foreground.

He stated, "Sector rotation has been seen in the market since Brexit and later on by the success of President Trump last November. This 'ART' cycle develops as banks' structured products pair with distributors to issue yield enhancement products to retail investors. These products hold different risks, typically, volatility, skew, convexity and correlation risk."

Low volatility an outcome of missing consensus

Fellow Roundtable participant, Per Ivarsson, head of Investment Management from Stockholm-based managed futures specialist RPM added that managers are definitely trading more volatility.

In this discussion, which took place in July in Stockholm, Iverson stated he believes that the low volatility regime will not continue. He pointed to the fact that there has been a discussion among market participants why the volatility is so low when the geopoliti......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. iCapital Network enters deal to acquire innovative U.S. private equity access fund platform from Deutsche Bank[more]

    Komfie Manalo, Opalesque Asia: Financial technology platform iCapital Network has entered into a definitive purchase agreement to acquire the US Private Equi

  2. Asia - Hedge funds used to love shorting China. Now, not so much, Fledgling China FoFs require careful use: NCSSF, Amac, Japanese banks turn to PE, hedge funds for returns[more]

    Hedge funds used to love shorting China. Now, not so much From Bloomberg.com: A sharp devaluation. A credit crisis. And an economic hard landing. That's what some of the biggest names in the hedge fund industry were predicting for China after the nation's stocks and currency tumbled in 2

  3. Launches - Orchard launches new credit platform, ETN based on hedge fund to launch on the LSE[more]

    Orchard launches new credit platform Orchard Platform has rolled out Deals as a part of its new platform launch. With the addition of Deals to their suite of technology solutions for loan originators and institutional investors, Orchard Platform takes the next step in their evolution. De

  4. Neuberger Berman closes $1.1bn Credit Opportunities Fund[more]

    Neuberger Berman, a private, independent, employee-owned investment manager, announced that NB Private Equity Credit Opportunities Fund LP closed on $1.1 billion of limited partner commitments. The Fund seeks to invest in the secured and unsecured debt of private equity-backed companies, primarily i

  5. Capital Dynamics launches mid-market private credit business[more]

    Capital Dynamics, a global private asset manager, has launched a dedicated Private Credit Asset Management business. Experienced industry executives Jens Ernberg and Thomas Hall have joined Capital Dynamics to co-lead the company's new private credit initiative. They are based in Capital Dynamics' N