​Weekly: Japanese Div Reevaluation, Cross Asset Trend Trading

Abraham Lincoln famously said, “You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time.” Today marks Honest Abe’s 207th birthday, and I feel that quote basically sums up how some market players are feeling right now in regards to central bank policy. Skepticism is driving this market as the S&P 500 tested its 1812 support level, declining to a low of 1813 on Thursday before recovering up to 1868 on Friday. In our coverage this week, we look at renewed interest in Japanese div trading in light of negative rates there. In Europe, the spike in volatility and consistent decline in spot since the beginning of the year has coincided with an increase in AUM in cross-asset trend following systematic products. We look at the increased interest in cross-asset momentum products and what impact recent market moves will have on autocallable issuance in Europe in 2016. For those in the U.S., have a safe and happy Presidents Week long weekend.