Hedging structured products during the corona crisis: where did it go wrong?

Widespread sell-offs in most markets, spikes in volatility and the very real prospect of losses faced by product issuers have all contributed to the ongoing turbulence, as has some degree of risk aversion from investors. In particular, the global market crash in March saw issuers of a huge number of autocalls linked to the main market cap indices such as the Eurostoxx 50 face spiralling hedging cost and potential losses. Companies have been suspending or scrapping dividends as they