Trump victory: market whipsaw could spell exotics losses

Stock market performance — Asian benchmarks saw sharp intraday moves

Aaron Woolner
Robert Mackenzie Smith
Lukas Becker
Tom Osborn
09 Nov 2016

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Donald Trump's shock victory in the US presidential election unleashed a hectic day of trading across global markets, with a huge sell-off in equities and rates assets during Asian trading hours followed by a watchful European session, then a full-blooded risk-on US session.

The whipsawing moves prompted speculation that dealers could face losses on hedges tied to their exotics books, with one source predicting losses for structured products issuers in the double-digit millions of US dollars.

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