Autocallable issuance upsets Euro Stoxx volatility market

Frenzied issuance on European indexes stacks up vega risk for dealers as natural hedge suffers

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Dislocations in Euro Stoxx implied volatility

At the start of the eurozone's growth wobble last year, when the Euro Stoxx 50 index fell by almost 2% on October 7, equity derivatives traders noticed something odd. Three-year fixed-strike imp