Hedge funds pile into Japan dispersion trade

Rise in single stock uridashi issuance drives trade

Stock exchange

Increasing retail appetite for single stock uridashi structured products in Japan has driven a spike in dispersion trading by hedge funds as dealers look to the sector as a way to hedge their long vega positions.

The 2013 bull market phase of Abenomics saw the benchmark Nikkei and Topix indexes rise by more than 70%, whereas this year they are both roughly flat following a period of volatility early in 2014. However, some single stocks have continued to flourish – particularly those with an

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

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 individual account here: