Hedge funds seeking cheap hedges for Italian referendum
Buy side turning to Brexit-inspired hedges for political tail risk
Hedge funds, asset managers and banks are ramping up hedges against a "no" vote in Italy's referendum in December.
The fear is the euro, European stocks and Italian bonds would slump if the country rejects prime minister Matteo Renzi's constitutional reforms on December 4, with concerns this would prompt an election in which populists trounce the establishment.
Investment banks are proposing two ways to hedge a "no" vote more cheaply than conventional approaches that use put options on the
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