Real money rides the hybrid options wave
Insurers follow hedge funds into exotic trades with equity-down, yields-down recession plays
The popularity of hybrid options is expanding beyond hedge funds, with a growing number of asset managers, pension funds and insurers taking advantage of dislocated correlations between asset classes for yield enhancement and cheap long-term hedging.
“The biggest chunk has been with hedge funds, but some of the largest trades have been done with asset managers – expanding in very decent size – and
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