Little value left in dividends, say dealers


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

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