​Hedge Funds Target Monetizing Eurostoxx 50 Elevated Longer-Dated Convexity

Hedge funds are increasingly considering strategies that take advantage of the current elevated longer-dated convexity in the Eurostoxx 50. Those funds are showing more interest in monetizing convexity to cheapen directional strategies as opposed to outright selling convexity, with many market participants predicting convexity could still gap higher.