Trump victory: market whipsaw could spell exotics losses

Seesawing markets prompt speculation of big losses for structured product issuers

Stock market performance
Asian benchmarks saw sharp intraday moves

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.


Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

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 individual account here: