Eurostoxx Long-Dated Calls Drive Fall In Repo Rates

28 May 2013

A spike in volume in long-dated calls on the Eurostoxx 50 to position for a rebound in European equities is driving a fall in medium- and long-term equity repo rates. This is because, as call volumes increase from investors, dealers are forced to increasingly hedge their exposures through Eurostoxx 50 forwards.

A spike in volume in long-dated calls on the Eurostoxx 50 to position for a rebound in European equities is driving a fall in medium- and long-term equity repo rates. This is because, as call volumes increase from investors, dealers are forced to increasingly hedge their exposures through ...

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