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Quantitative Finance · Glossary

What is Dividend supply pressure?

Definition 26.3 Strategies II: Volatility, Relative Value, Macro and the Bank Desks · Chapter 26 — Delta-One and Dividends

Dividend supply pressure is the discount of dividend futures or swaps to expected dividends that arises when hedgers who are naturally long dividends, such as issuers of structured products, sell more than other investors want to buy at fair value.

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