Reactive Investors Reinforce The Case For Equity Repo

The market selloff in February once again reinforced the case for equity repo, with a handful of investors successfully reacting to a decline in both repo and dividends at the beginning of the month. It is the latest example where investors have profited from either their long five-year repo positions or through synthetic long-dated forwards in the Eurostoxx 50 (SX5E) to capitalize on the extreme moves in both dividends and repo following the market decline. Rob McGlinchey spoke with Société Générale’s Alastair Beattie and Janus Henderson’s David Elms and Natasha Sibley, two of the most active PMs taking advantage in the supply and demand imbalance in markets globally, on why more investors should take note of the opportunities available in the universe of equity parameters, where equity repo resides.