Funds Hedge China Tail Risk Via Aussie Swaptions

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Funds Hedge China Tail Risk Via Aussie Swaptions

December 01, 2010 (Last updated: December 03, 2010)

Some Asian equity and macro hedge funds have been buying Australian dollar receiver interest rate swaptions as a cheap tail risk hedge against a hard landing scenario in China, said Viktor Hjort, head of equity derivatives strategy in Asia at Morgan Stanley in Hong Kong.

--Eleni Himaras

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SOUTHEAST ASIA DCM

Rank

Bookrunner Parents

Deal Value $ (Proceeds) (m)

No.

%share

2012 YTD Rank

Standard Chartered Bank

3,991

8.9

HSBC

3,710

8.3

Goldman Sachs

3,333

7.4

Deutsche Bank

2,895

6.4

Citi

2,774

6.2

JPMorgan

2,288

5.1

DBS

2,106

4.7

Siam Commercial Bank

1,835

4.1

Barclays

1,586

3.5

CIMB Group

1,523

3.4

Subtotal

26,040

123

57.9

Total

44,958

212

100.0

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