Trump victory: market whipsaw could spell exotics losses
Seesawing markets prompt speculation of big losses for structured product issuers
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.
In
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