​Investor Interest Spikes In Novel Rates Var Swaps

Sep 12, 2016

Hedge funds and institutional investors are increasingly showing appetite for novel variance swaps linked to the 10-year U.S. CMS. The structures offer similar benefits to variance swaps traded in equities, such as less path dependency and lower maintenance costs, and allow investors to benefit from the supply/demand imbalance in the rates markets that put pressure on the way volatility behaves.

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