Uridashi losses put at $500 million after Nikkei rebounds

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On page 13 of its fourth-quarter earnings report, published on February 5, UBS tries to explain a Sfr177 million ($188 million) slump in equity trading revenues. Part of the problem, it says, was the Japanese structured products book, which lost money as volatility increased in December’s Nikkei 225 index rally. What it does not say is that the rest of the industry suffered too – and not just at the end of the year.

Exotics desks were initially caught out in the second quarter, when the Nikkei

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What gold's rise means for rates, equities

It has been several years since we have seen volatility in gold. An increase in gold volatility can typically be associated with a change in sentiment and investor behavior. The precious metal has surged this year on increased demand for safe haven…

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