Volatility, correlation and dividend losses sting banks

"We lost money in two areas: dividends and correlation/volatility," says one London-based head of structured products at a US bank. "Every dealer was effectively the same way, and when there are big, simultaneous moves in the market and you are short correlation, you are going to lose money. You're getting caught on the gamma. It is the same as what happened in Q1, but far worse. There have been some very sharp moves recently." One London-based head of retail structured products at a European

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What gold's rise means for rates, equities

It has been several years since we have seen volatility in gold. An increase in gold volatility can typically be associated with a change in sentiment and investor behavior. The precious metal has surged this year on increased demand for safe haven…

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