The latest on credit index options
All Those options written on CDS indices continue to explode in popularity.
So much so that Barclays analysts are now warning the options may end up influencing the behavior of the indices themselves. (Why? Because all those dealers need to hedge. Can we say impending gamma trap?)
Read more on the tail wagging the dog in credit index options over here.
2 thoughts on “The latest on credit index options”
Which is so meta, because the credit indices drive the underlying single names most of the time.