Australia - Providing cover from volatility
Volatility in the Australian stock market has been climbing on the back of the global spike and strength in the resource-heavy equity index. What are market participants doing about it? Marion Williams reports
Volatility in Australia's resource-dominated stock index has been rising for almost two years, long preceding the spike in global volatility earlier this year (see graph). Bankers have capitalised on the increased market volatility to structure products offering portfolio protection for institutional investors and hedge funds, and to create retail investments that offer diversification and potential for higher returns. With volatility expected to remain high, these themes will continue for some
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