The recent surge in implied dividends has been so vigorous dealers say there is little upside left in going long dividends.
Dealers are inherently long dividends as a result of popular structured products sold to clients, such as reverse convertibles and auto-callables. These products pay investors a high coupon provided the underlying reference shares do not fall below a certain barrier. If the price of any of the stocks does fall below this level, the products redeem in shares. The structures