Did tariff rout expose ‘autocallification’ in US dividend futures?
Bank of America cites curve flattening and beta surge as evidence of autocall hedging
A dislocation in S&P 500 dividend futures during April’s tariff turbulence has raised questions about whether dealer hedging of structured products is weighing on US equity markets, mirroring a common trend in Europe and Asia.
CME-listed futures tracking S&P 500 dividends typically trade with an upward-sloping term structure – so-called contango – meaning longer-dated contracts are more expensive
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