Autocallable issuers avoid pain despite HSCEI collapse

Dealers say Korean autocall pain has been subdued as volatility stays low

Fears of losses for structured products issuers on the back of plummeting Chinese stocks have yet to materialise despite a benchmark index breaching a key barrier, dealers say, with volatility spiking less aggressively than expected and tactical hedges containing the fallout. Traders say it may be a different story if the index continues to fall, however.

A global stock market rout that has seen the FTSE All-World Index make its worst start to the year since 1994 has been led by China, where the