Funds buy back payers on Financials as Sen Fin vol soars

Paola Lamedica
By Hazel Sheffield
15 Jul 2014

Hedge funds have been buying back short payers and entering new longs on Senior Financials this week, taking the three-month iTraxx Sen Fin volatility to the highest level for the past year, despite the index still trading relatively tight, in the bottom 13% percentile for the year.

“We had seen quite a few investors selling out of the money payers and with the index backing up, they are buying them back,” Paola Lamedica, credit sector specialist at BNP Paribas in London, told GlobalCapital. “We have also seen new buyers of payers outright, which is also ...

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