​Capstone’s Moffatt, Man AHL’s Bacmann See Spike In Tail Hedging Interest

Investors are increasingly showing interest in adding protection to their portfolios following the recent period of positive equity spot moves, according to Capstone’s John Moffatt and Man AHL’s Jean-Francois Bacmann. Speaking at a Research Seminar on index derivatives and volatility yesterday evening at the London Stock Exchange, portfolio managers noted that the trend of banks becoming less willing to take on risk, combined with the growth of structured products in Asia referencing the Eurostoxx 50, is also driving greater dislocations and increased trading opportunities. Liquidity and the valuation of Bunds also drew comments from participants of the seminar.