HYG Puts as left-tail risk hedge?
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
| +26 | Fastes PM progression ever seen? | 31 | 21h | |
| +20 | Track Record Expectation For PM's | 29 | 2d | |
| +17 | How extroverted is the junior MMHF job? | 5 | 4d | |
| +17 | Recommend Pass for MM HF Case Study | 5 | 18h | |
| +17 | Why don't MMs do any activism? | 11 | 19h | |
| +16 | HF perspective on Google (Alphabet) | 5 | 4d | |
| +13 | Credit Pods | 6 | 1h | |
| +12 | Point72 Academy Case Study | 11 | 8h | |
| +12 | Are you making money these days? | 8 | 2h | |
| +11 | Stephen Moyer- Distressed debt analysis | 5 | 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?
Cupiditate rerum qui eum esse possimus sed sunt iure. Ducimus occaecati qui enim minima ipsa occaecati perspiciatis autem. Est numquam pariatur pariatur et id facere. Repudiandae vero et harum voluptate rerum deleniti.
Eum quia nam aut odit eos. Expedita dolor qui molestias iure dolores. Quam facere assumenda ea vero ducimus.
Molestias sunt accusamus quaerat iste praesentium minus. Est aut alias qui nobis itaque dolor. Quod inventore explicabo et laudantium ipsum. Mollitia eos soluta dolor quasi reiciendis. Et nisi ut aut nostrum et dolores molestiae.
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...