BTG Pactual Eyes RV Opportunities In Q4

BTG Pactual is actively looking at ways to monetize the recent increase in correlation skew on the Euro Stoxx 50 and the Standard & Poor’s 500. This can be done by trading downside corridor dispersion as well as using downside strike options and single-stocks and indices, said Benjamin Clerget, CIO of the manager’s global derivatives opportunities fund in London. “The increase in correlation skew is driven by hedging flow on indexes that has not been seen in a long time,” he said.