Thoughts on HYG puts? Any better ideas for left-tail risk hedging?
Seems like half of the wall-street trading deks are loading up on this.
Trending Content - Hedge Fund Forum
| +21 | Do Quantamental roles really exist? | 8 | 36m |
| +14 | Average single manager slope | 5 | 2d |
| +13 | Fastest Way to MMHF? | 9 | 23h |
| +9 | Bad PM | 5 | 20h |
| +9 | Yes, this question again… | 2 | 13h |
| +6 | Hedge Fund (Fundamental Long Short Equity) Compensation in Singapore Hong Kong | 2 | 32m |
| +5 | X | 6 | 2d |
| +5 | Worth Joining a Small Hedge Fund? | 6 | 7h |
| +3 | Possible to do opportunistic credit in SF? | 1 | 9h |
| +2 | Walleye SA 2027 | 4 | 3d |
Career Resources
Hi Achilles., whoops, looks like nobody chimed in here.... maybe one of these discussions below is relevant:
More suggestions...
If those topics were completely useless, don't blame me, blame my programmers...
Depends what you are trying to hedge. Your PA? Better to not take basis risk on. If you are a HY HF much better to buy swaps or HY CDX shorts. Want to hedge rates? Hedge dv01 or partial durations. Sell side desks don't hedge with HYG because of the basis risk, they just hedge with CDX. Also buying HYG puts is as much a vol bet as a directional one. Whoever is buying HYG puts may be doing so for numerous reasons.
Can you ELI5 the basis risk with HYG? And “whoever is buying HYG puts may be doing so for numerous reasons”, can you expand on those reasons?
Where does it say 1/2 of the wall street desks are loading up on the trade?
Velit consequatur et exercitationem doloribus nobis quis enim. Dicta non nihil fugiat quisquam ratione tempore voluptatem. Earum velit pariatur aut quam ea doloribus velit.
Eum quibusdam non ducimus eum quis earum. Sequi placeat ipsum reprehenderit laudantium voluptatem et. Sed non delectus libero inventore dolore deleniti. Ad numquam aperiam adipisci ut hic. Quae voluptas qui sapiente sit necessitatibus sequi nam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...