Sizing up skew


Any serious structured products house will be exposed to skew. These days, most banks are content to hedge this risk using vanilla strategies. However, a small faction of equity derivatives players believe there is a better way to cope with skew exposure. They argue that products purpose-built to pass skew to investors will give banks a more accurate hedge. Others contend these new products do not serve to repackage any risk per se, but are simply another financial instrument.

"There are comp

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: