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Bloomberg
Financial

Banks Offload Risk from Leveraged ETFs with 'Crash Puts'

Bloomberg's Yiqin Shen joins Scarlet Fu and Eric Balchunas on "Bloomberg ETF IQ." Leveraged ETFs that offer the tantalizing prospect of doubling or tripling the daily returns of an individual stock are famously risky for investors who buy them. The result has been a quiet surge of activity in an exotic corner of the derivatives market, where investment banks, hedge funds and other institutional investors trade what are often known as "crash puts" and sometimes referred to as cliquets or stability notes.

Leia mais: Banks Offload Risk from Leveraged ETFs with 'Crash Puts'
Bloomberg

AI Valuation Gaps Set to Widen as Investment Cycle Matures

A volatile month for US equities ended on a higher note Friday, with the S&P 500 Index clocking a 1.1% weekly advance. Much of the comeback can be linked to gains in technology stocks on Thursday and Friday, particularly Microsoft. and Amazon. Sarah Hunt, Chief Market Strategist at Alpine Saxon Woods, discusses recent tech earnings and their market impact as traders look ahead to jobs data this week.

Leia mais: AI Valuation Gaps Set to Widen as Investment Cycle Matures