​Daily Bulletin: Thursday May 28

A sizeable reversal conversion on Bank of America stood out to traders on Wednesday. The trade, however, was unrelated to news reports that noted that BofA could make cuts to its markets trading division. In today’s coverage, EQDerivatives focuses on dividend futures trading strategies. We speak with Allianz’s Eric Boess, who noted that curve steepeners as long out to DEDZ9 appear attractive despite subdued growth expectations in Eurostoxx 50 index dividend futures. Separately, we report on how going long Eurostoxx 50 mid-term dividend swaps and five-year CDS is pricing attractively, despite the divergence in dividend yields and bond yields over the last 18 months.