Fast and real money race to unwind Crossover hedges

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By Hazel Sheffield
19 Aug 2014

Fast and real money investors are racing to unwind hedges on iTraxx Crossover following a recent tightening of the index from 272bp on Friday to 248bp at close on Tuesday.

Paola Lamedica, credit sector specialist at BNP Paribas in London, told GlobalCapital fast money has been unwinding hedges, as volatility has increased on Crosssover in recent weeks due to cash outflows from exchange-traded funds. Such investors sold payers in Crossover with September and some December expiries with strikes ...

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