Desk Color – closing out the week on Fri, flows were a bit more stable as the panic from Thurs subsides a bit. Three desks made comments to me mentioning a lot of pairs trading occurring as funds looking to take advantage of steep declines in some situations were forced to move out of relative winners to free up capital. There remains a big interest in the macro – people are still looking at single stock ideas, but at the same time wanting to have on macro hedges in case of another market rout. Sellers are becoming exhausted, but buyers aren’t jumping in on the weakness like they did before the middle of Mar. There is still a massive de-risking trade in place and liquidity has been moving out of the market given the huge uptick in volatility.
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