​Mid-Week Roundup – SPX Div Trading Starts; Korea Autocalls Stagnate

With the CME launching SPX listed divs this week, we take a look at how some investors are looking at the contracts as an equity proxy with a potential Fed hike on the horizon. They’re bullish earnings growth, but mindful of the impact a hike could have on multiples. However, the new contracts also pose a problem for some investors wanting to do deeper analysis. Put simply, 500 names is a lot more complex than the SX5E’s 50. In Asia, some are tipping the all mighty Korean autocallable market could be in for a week 2016 issuance wise, as the structured product’s number one underlyer, the HSCEI, continues to look weak. This is one of the reasons the county’s regulator has recently sought to clamp down on new issuance that use the Chinese benchmark. We also talk to one Hong Kong fund manager looking at attractive spread trades between the AS51 and the SPX.