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Derivs - Equity

  • Macro Risk Advisors, a New York broker dealer specializing in equity derivatives, is recommending investors buy put spreads on commercial real estate companies, reflecting the expectation of declining values.
  • Diwan Capital, a boutique investment bank in Dubai, is preparing to launch a derivatives business for over-the-counter and listed trades within the next two months.
  • Karen Reynolds, an equity derivatives marketer to private bank clients at JPMorgan has left.
  • Deutsche Bank has made a round of cuts to its equity derivatives trading team in Asia, with approximately five traders made redundant two weeks ago, say people with knowledge of the matter.
  • Hedge funds are using the combination of a decline in index options volatility and gyrating prices in single stocks to buy variance swaps and place puts and calls on single name stocks.
  • Tommy Fang, executive director of equity derivative sales for Goldman Sachs in Hong Kong, has handed in his notice, reportedly within the past week.
  • Barclays Capital is looking to UCITS III-compliant mutual fund structures to attract private wealth investors in Asia who have begun shunning over-the-counter derivatives because of counterparty and issuer risk concerns.
  • Markit is preparing to launch a cash convertible bond index paired with an equity hedge index so it can license both for over-the-counter derivatives.
  • Mint Partners, a London-based broker specializing in equities and fixed income, has expanded its over-the-counter and listed equity derivatives team with the appointment of three senior brokers.
  • Institutional equity investors who want to make up for lost dividends on stocks are advised to write three-month covered calls 10% out of the money on the Standard & Poor’s 500, as an example, to pocket premiums, according to Morgan Stanley equity derivatives strategists.
  • New York-headquartered equity and equity options shop Bay Crest Partners is ramping up to buy and sell bonds.
  • Harvest Volatility Management has set a July 1 launch date for an unnamed volatility arbitrage offering.