Funds, real money pick payers on Main

Easter Options
By Hazel Sheffield
14 Apr 2014

A mix of hedge funds, real money and bank desks are looking at ways to avoid paying theta during the Easter holidays in Europe by trading payer spreads 1x1 on the iTraxx Main, with some also tapping 1x2 payers.

Paola Lamedica, credit sector specialist at BNP Paribas in London, said that despite no obvious widening triggers, investors are cautious as the valuations are thought to be relatively tight. While many are looking to use options to hedge for a widening of spreads in the iTraxx Main, the ...

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