LOCKED MI2 Trader: HYG

Last week, we started our virtual autumn roadshow, which we will conclude by the middle of the month. At that point, we will share any feedback in the usual “Thoughts from the Road.” However, while a little premature, we have been struck by the number of equity clients asking for tail risk hedges. Their concern is that, while current dynamics couldn’t be more bullish for stocks, the risks to this halcyon backdrop are rising. In particular, thus far, while fixed income volatility has been limited to the front end of the curve and, as such, was of little risk/interest to stock traders (most equity investors wouldn’t know a bear flattener if it bit them in the ***), that could change quickly.