Derivatives helped trigger some of the <-bsp-bb-link state="{"bbDocId":"JTBJAD0YHQ0Y","_id":"00000179-18ba-d83a-a77f-79ffcea80000","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">most disastrous episodes-bsp-bb-link> in the history of finance. Now risk-averse institutional investors are increasingly turning to them for protection amid <-bsp-bb-link state="{"bbDocId":"QP585ZDWX2PW","_id":"00000179-18ba-d83a-a77f-79ffcea80001","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">a perilous time-bsp-bb-link> for global debt markets.
All manner of complex solutions, from put options to receiver swaptions, are gaining traction as a way to overcome the <-bsp-bb-link state="{"bbDocId":"QNV4QDT0AFCV","_id":"00000179-18ba-d83a-a77f-79ffcea90000","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">drawbacks of bonds-bsp-bb-link> as a hedge after debt failed to insulate portfolios at key moments last year. Throw in the <-bsp-bb-link state="{"bbDocId":"QP5QEWDWX2PT","_id":"00000179-18ba-d83a-a77f-79ffcea90001","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">glaring threat of fixed-income losses-bsp-bb-link> as the economy rebounds, and the likes of pensions, university endowments and sovereign wealth funds are tapping asset managers specializing in derivatives ...
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