How Asia’s structured products dodged equities sell-off

Dealers deserve praise for improved structures, greater diversification and better risk transfer

Traditionally, an unexpected stock index crash sets alarm bells ringing for structured products traders in Asia. 

The popularity of the products among investors in the region means dealer hedging activity can represent a significant proportion of trading in certain indexes. So when times get tough, dealers often hit the same hedges at once, moving prices against them and leading to losses.

But the extent of the losses after China’s Black Monday in 2015, when dealers of Korean equity-linked

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