Uncertain dividends

Dividend swaps fell out of favour in August, with hedge funds ditching long positions in the wake of turbulence in the financial markets. But some dealers say current dividend swaps levels reflect an attractive buying opportunity. Duncan Wood reports

risk-1007-25-gif

Every winning streak comes to an end, but investors in the dividend swap market could have been forgiven for thinking theirs was the exception to the rule. The market's history is one of unblemished, spectacular returns for those investors that have chosen to go long dividends. That run came to a shuddering halt on July 20, when swaps across a range of maturities peaked simultaneously and went into reverse.

Dealers are keen to portray the decline as an orderly - and limited - retreat. But some

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here