​Investors Profiting From SX5E Equity Repo Distortion

Activity in total return swaps on Eurostoxx 50 (SX5E) equity repo soared at the start of 2015 amid increasingly dislocated levels, allowing hedge funds and institutional investors to enter into repo relative value positions. Rob McGlinchey spoke with PKA’s Lea Vibeke Nielsen and Société Générale’s Alastair Beattie as to how equity repo has offered investors a way of profiting from market dislocations as well as the development of products available to investors to trade distortions in the repo.