How can derivative solutions give you the edge?
With central banks tightening, what’s the impact for cross asset volatility?
The Negative interest rates policy (NIRP) has become a hindrance for banks’ net interest margins.
Presenting to our clients the point at which higher interest rates become a headwind for risk assets to usher an era of higher realized volatility, is proving to be a pivotal decision factor.
Can Europe decouple from the US?
The valuation gap between US and Europe is likely to close as Europe’s economic momentum increases with a vengeance.
Inflows into European equities have become the path of least resistance.
How to risk manage portfolios around market events
Reading implied volatility risk premium across asset classes priced by political events is complex. Societe Generale has developed a range of solutions to take advantage of the asynchronicity of risk premium across asset classes.
The low volatility conundrum
Changes in the business cycle regime are still not affecting depressed volatility. This is where yield enhancement structured products and systematic volatility selling strategies are helping to drive performance for our clients.
Can the use of hybrids deliver more reliable outcomes?
Implied correlation across equity, FX and rates can be monetised in order to cheapen hedges.
Dual digital and contingent options have become very popular solutions and offer more efficient trades around Brexit, Frexit and Renzit.
Is the trumpflation trade dead or alive?
Uncertainty surrounding the timing of the US Tax reform has taken momentum out of US assets, with US Inflation still below expectations, despite unemployment at the NAIRU.
The unwind of the reflation trades has become the path of least resistance. Therefore, hybrids options, such as equity puts contingent on US rates lowering, are a solution for efficient hedging that take advantage of attractive cross asset implied correlation levels.
Supporting clients through an integrated global markets platform, drawing from sophisticated areas of expertise, across asset classes and from cash to derivatives.
Find out how to make Markets work in your favour through the expertise of our Global Markets team, for all your investment and hedging needs*.
(*The value of your investment can go up or down)
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Societe Generale
Societe Generale is a French credit institution (Bank - Investment services provider) authorised and regulated by the Autorité de Contrôle Prudentiel et de Résolution (the French Prudential Control and Resolution Authority - ACPR), and under the prudential supervision of the European Central Bank- ECB. Societe Generale is a French Société Anonyme (limited company) with share capital of € 1 009 641 617,50, as of January 2017, whose registered Head office is located at 29 boulevard Haussman – 75009 PARIS (France), registered with the Paris Trade and Companies Registry under number 552 120 222. This document may be issued in the U.K. by the London Branch of Societe Generale (SGLB). SGLB as a U.K. branch is subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our authorisation and regulation by the Prudential Regulation Authority, and regulation by the Financial Conduct Authority are available from us on request.
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