‘It’s Happening Again’, Nomura’s McElligott Warns On Risk From ‘Daisy-Chained’ Crash Hedges

"It's happening again", Nomura's Charlie McElligott warned on Wednesday morning, picking up where he left off in a short client blast sent out Tuesday afternoon. What is "it"? Well, "it" is another buyside hedging program which Charlie notes is "effectively 'maxing-out' Dealer risk-capacity". He likens this to the setup in late July/early August in terms of the potential for second order effects to manifest themselves directionally in equities. "Mimicking the experience of late-July into Augus