Societe Generale

Between volatility and variance

Banks and investors were hammered on short single-stock variance positions during the financial crisis, leading many dealers to withdraw from the variance swap market. The alternative that some have reverted to is the volatility swap, although this has…

Brics back in fashion

The debt crisis in Greece has brought volatility to the eurozone and given global markets the jitters. For many private banking accounts the affair has further underlined the attractiveness of emerging markets, where budget deficits are often lower and…

Strategic thinking

Banks and index providers have been quick to colonise the investment space vacated by stressed hedge funds after transparency became a byword for popularity. With both now offering proprietary dynamic strategies and promising alpha returns, will they end…

A reversal of power

Investor demand for power reverse dual currency structures has fallen off a cliff as these once high coupon-paying instruments have morphed into zero coupon bonds with lock-in periods of up to 30 years. Issuers have also incurred significant costs. Is…

China forces IEA to boost oil demand forecast

Higher-than-expected demand from China and other Asian countries has forced the International Energy Agency (IEA) to revise up its global oil demand forecast for 2010 by 120,000 barrels a day (b/d) to 86.5 million b/d.

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