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Hedging, Not Selling

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It appears that while investors seem loathed to sell their underlying positions, they are actively (and anxiously) hedging in equities and credit today...

The credit ETF (and CDS) market provides liquidity for active hedging - as does the VIX ETF and futures market...

 

We just hope the 'collaboration' among the non-sellers doesn't break soon. Will the game-theory break and managers realize that the first seller is the best seller...

Charts: Bloomberg


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