Weekend Prep

The report highlights a disconnect between nervous credit markets and calm equity indices, alongside record-low implied correlation. Investors are increasingly focused on hedging risks as US dollar positioning hits decade highs.

Key Takeaways

• 1.Credit markets are showing signs of stress with widening bond spreads despite calm equity markets.
• 2.Implied correlation is at record lows, prompting interest in trades that capitalize on potential volatility spikes.
• 3.US Dollar positioning in the futures market has reached decade-high levels.

Table of Contents

• weekend prep
• pb (i)
• pb (ii)
• one delta
• futures
• derivatives (i)
• derivatives (ii)
• derivatives (iii)
• etfs

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