FYI: The often exotic hedging strategies used in over-the-counter (OTC) derivatives swaps contracts are back in favor with portfolio managers.
That’s the view of several fund managers, some of whom question whether they were ever out of favor despite the market meltdown of 2008. Contrary to conventional wisdom, OTC derivative contracts remain an important part of their hedging and liquidity strategies.
Regards,
Ted
http://www.fa-mag.com/news/managers-using-more-otc-derivatives-20014.html?print