Dealers tout dividends despite slide

Implied crisis

dan-fields
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

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: