Leaving Las-Vega: Nomura Structured-Notes Head Says Banks Face 'Hedging Squeeze' Amid Booming Business

Summary

Leaving Las-Vega: Nomura Structured-Notes Head Says Banks Face 'Hedging Squeeze' Amid Booming Business Structured notes have been booming, with SEC-registered US notes on track to hit about $300 billion this year, up from roughly $200 billion last year. But the demand that had been levitating option premiums has gone , according to Alex Micalizzi, Nomura's international head of equity structured notes, leaving the banks that sell these notes with more volatility to offload than the market wants to absorb. Asked on Bloomberg's Odd Lots whether the pullback reflected tight balance sheets or…

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