​Daily Bulletin: Thursday Nov. 13

Pensionskassernes Administration is increasingly entering into balance sheet and dislocation trades as investment banks face heightened capital requirement pressures and reduced risk limits. The fund’s portfolio management team have been analyzing the comparable advantages and lucrative opportunities that such trades offer pension funds, particularly given the current low yield environment. Hedge funds, meanwhile, are looking at ways of capturing convexity risk premium on the back of significant variance swap flow in underlyings such as the Eurostoxx 50 against the S&P 500 or FTSE 100. We also have the latest on Scot Warren’s replacement at CME. Tim McCourt, ex RBS delta one trader, has taken over the bourse’s equity business.