“This is a much more severe shift in terms of tail risk protection than in 2008…We’re seeing some very aggressive short-term protection trades that evidence investors’ belief that a major crash, if it happens, will happen in the next one-three months as opposed to the next two-three years as they believed in 2008.”
—Clifford Davis, head of equity derivative flow sales for the Americas at BNP Paribas in New York, on the reason for the spike in short-dated tail-risk protection trades.
Unlock this article.
The content you are trying to view is exclusive to our subscribers.
To unlock this article:
- ✔ 4,000 annual insights
- ✔ 700+ notes and long-form analyses
- ✔ 4 capital markets databases
- ✔ Daily newsletters across markets and asset classes
- ✔ 2 weekly podcasts
