Heady equity markets lead to increased hedging

摘要

A growing number of investors are using derivatives to hedge their equity holdings following a remarkable stock-market rebound over the past several months amid a global pandemic. The S&P 500 is within touching distance of the record close it reached in February, having almost recovered from a 34% plunge earlier this year after the coronavirus forced large sections of the global economy into lockdown. That sustained rally - helped in no small part by extraordinary central bank and fiscal stimuli - has confounded sceptics convinced that equities would inevitably falter in the face of dire economic data.