The creative hedge

Equity derivatives

risk-0308-27-gif

Hedge fund managers have had to endure a tricky few months. With equity markets plunging, volatility hovering close to recent highs and correlation on the rise, the across-the-board gains notched up by the hedge fund industry in 2006 have not been as easy to replicate. In this environment, portfolio insurance, once considered an unnecessary expense, has become increasingly important. But with rising volatility pushing the price of out-of-the-money index put options to prohibitively high levels,

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net 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: