Credit options notional for top US dealers soars 45.3%
Investor demand for puts and calls drives balances near Q1 2022 record
Notional amounts of credit options sold and purchased by top US dealers surged by 45.3% in the second quarter, reflecting the uncertainty around the timing and nature of a potential US Federal Reserve interest rate cut, which has driven market participants to hedge various outcomes for their portfolios.
The notional balance of credit options written and purchased by Bank of America, Citi, Goldman Sachs, JP Morgan and Morgan Stanley – institutions that account for virtually all trading in these
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