Dealers tout dividends despite slide

The recent collapse in the value of dividends is a reminder of painful 2008 losses for dealers – but the industry says long positions will make money in any scenario short of catastrophe. Mark Pengelly reports

Dan Fields, SG CIB

Sliding stock markets have dragged dividend expectations down by as much as a third over the past couple of months, driven partly by dealers' attempts to hedge the long dividend exposure resulting from their structured products business. That sounds ominously similar to the fourth quarter of 2008, when banks trying to reduce exposure to falling dividends found hedge funds - which typically provided the other side of the market - reluctant to trade. The market's sudden illiquidity magnified bank

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 or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a 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