Demand for downside puts keeps skew high

The turn of the skew

roger-naylor

Equity derivatives desks experienced a white-knuckle ride in the second quarter of this year, as the European sovereign debt crisis caused volatility to soar. Today, many market parameters remain stretched, but there are few participants able to take advantage of the dislocation. In fact, dealers say liquidity in volatility products has diminished globally, thanks to a confluence of factors including market uncertainty, regulatory change and a lack of hedge fund activity. Some bankers even point

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: