​Daily Bulletin: Monday Nov. 24

Private wealth managers are using leveraged notes that track smart beta indices in a bid to diversify their qualified institutional client’s typically real estate heavy portfolios. The deals, which offer 2x leverage typically use futures and options to switch between the S&P 500 and the CBOE Volatility Index, are being placed privately, according to a senior equity derivatives structurer in New York. Also in the US, UBS is seeing interest in its delta-hedged straddle strategies, with levered deals averaging about USD25 million notional. Quadratic Capital’s Nancy Davis and David Seif also share their thoughts exclusively with EQDerivatives on the copper market in their latest commentary post.