tag

Jacob Bethell was not supposed to be England's headline act in the fourth Test at the Melbourne Cricket Ground but he looked like a player who belonged when the tourists ‌made their nervous chase for victory against Australia.Replacing the dropped ‌Ollie Pope at number three, ‍22-year-old Bethell had appeared on a hiding to nothing in Melbourne on a difficult pitch in ⁠front of a record crowd of ⁠94,000.His debut Ashes innings on Boxing Day, the biggest occasion in Australia's cricket ‍calendar, was no fairytale, producing one run from five balls and a caught-behind dismissal off Australia's fifth-choice seamer Michael Neser.His second innings, however, gave a glimpse of why England have such high hopes for the left-hander.Bethell delivered a composed 40 off 46 balls to help prevent an Ashes whitewash and claim England's first test win in Australia in 15 years."I ‌was pretty nervous," he said. "Not so much with the number of people, just the occasion. I've played in India where it feels like there's 160,000 watching."Bethell was speaking of ‍his stint in the Indian ⁠Premier League (IPL) where ‌he played two games for Royal Challengers Bangalore.While the IPL helped him get used to big crowds, it also meant missing out on more first class cricket, including a one-off test against Zimbabwe in May.Having shown great promise with three fifties during his debut test tour of New Zealand a year ago, Bethell was not selected for England until the fifth test of the home series against India and managed only single-figure scores.He hardly needed to tap into his limited experience at test level on day two in Melbourne, though, with England facing a ​white ball-style chase of 175 ‌runs.On his second ball he lofted Jhye Richardson high over the slips cordon for a streaky four to ⁠get off the mark and ‍had his second four off Scott Boland a few balls later when he stepped forward to drive him to the long-on fence.Bethell looked in full control of the situation but his hopes of a maiden Ashes fifty were crushed by a sharp catch in the covers by Usman Khawaja and he marched off ​hugely disappointed.Tailender Brydon Carse took the number three spot for the second innings in Melbourne but Bethell, who came out at four, would like it back for the fifth and final test in Sydney starting on January 4."I like number three. You come in when the ball is new and in some scenarios the ball’s going all over the shop," he said."But in other scenarios it presents opportunities to score when bowlers are trying to take wickets ⁠and the field is attacking, there's loads of gaps."It's a double-edged sword, but I'm enjoying it." 

Investors’ daily waves of option sales are poised to slow a sustained stock rally back to record highs.Option-selling strategies have abounded in 2025, from exchange-traded fund overwrites to systematic zero-day to expiry trades and bank Quantitative Investment Strategies. On the other side, the dealers typically rebalance their positions each day by selling into rallies and buying dips.The slowing effect may be felt more on gains than drops, as JPMorgan Chase & Co strategists led by Bram Kaplan noted an increasing preference for selling calls over puts in recent weeks. Meanwhile, UBS Group AG points to a particular strategy — selling so-called iron condors — that is popular with retail traders.With investors focused on ever-shortening windows of volatility to manage risks, the influence of contracts expiring from zero to five days away has surged. Zero-day to expiry options in particular keep scaling new heights at about 60% of overall S&P 500 Index volume.The short iron condor strategy — where a trader sells a call spread above the current market level and a put spread below it — has become popular with some retail traders, boosting volumes. Positioning on one-day to expiry option trades in the S&P 500 — specifically via the short iron condors — may have helped contain recent rallies, according to derivatives strategists at UBS.“This 1DTE iron-condor flow is now leaving a very clear imprint on SPX options positioning profiles, to the extent that it may be influencing underlying price action,” said Kieran Diamond, derivatives strategist at UBS.The iron condor strategy is set up to collect premium as long as the market stays in a narrow range. Market makers holding the opposite side of such trades have more hedging to manage when the underlying price approaches the nearer call strike in the final 30 minutes of trading. The size of the spreads and the distance between the strike prices has increased in recent months, according to UBS.While overall market maker gamma positioning from 0DTEs is dynamic during trading hours, much of the flow is still from investors selling options. Dealer positioning is most extreme on the upside call strikes. The lower volatility on those increases the gamma per unit of notional, making the dealer hedging impact more pronounced.“The most significant risk sits to the upside, with SPX market makers managing very large long gamma exposure from the calls that the condor traders have sold to them,” said Diamond. “When managing this risk, market makers need to sell equities as the index moves up toward the strike, which makes it incrementally harder for the S&P to rally during the trading session.”The end of the day is particularly fraught. In the most extreme example from Oct. 24, S&P 500 dealer gamma reached a peak of around $90bn 10 minutes before the close, according to Diamond. This means that a roughly 0.1% move in spot would generate around $10bn in flow to be bought or sold.While that can be absorbed by the futures market, it isn’t without a price impact. In theory, markets may be more likely to gap-up outside of regular hours in Asia or Europe, as the dealer hedging needs subside at the close every day.“There were a number of sessions through October when the market seemed to struggle to break through the region where this long gamma is concentrated, but then rallied after the close once the majority of the options risk had expired,” said Diamond.That may offer opportunities to exploit such price distortions, for example buying a one-day option at the close every day and selling it back at the open the next morning. Dealer gamma resets daily from this flow, so positioning tends to flatten around the end of trading at 4 pm New York time.Some are sceptical about the market impact of a particular option strategy like the iron condor.“Of the 25 or so different things that are pushing markets in different directions, this is one of the 25,” said Chris Murphy, co-head of derivatives strategy at Susquehanna International Group.Murphy said it was simply “one of many factors” influencing the market. “It gets more attention than it deserves.”Also, there are questions about the sustainability of such systematic short option flows, especially if they are retail driven.“Any systematic short-option strategy generally harvests premium pretty well until a high volatility environment realises and then it kills the trade via convex losses,” said Garrett DeSimone, head quant at OptionMetrics. “Even if you have great risk management and you can time the exit points, you will likely end up being sidelined for such a long period that your investors will likely lose patience and redeem.”

Chase Koepka is injury-free and ready to battle his way back to LIV Golf for the first time since being relegated in 2023.The 31-year-old American is setting his sights on LIV’s Promotions event in January to complete a comeback to the Saudi-backed league, two years after losing his spot with only four top-40 finishes in his second season.“For me, the nice thing about the Promotions event is that it’s in Florida, it’s a home event,” Koepka told Bunkered. “I haven’t been able to play it for the last two years because of injury, so it would be great to have that opportunity. Good golf takes care of itself.”Shortly after his 2023 relegation, Koepka suffered an offseason shoulder injury that required major surgery and kept him away from competition for more than a year.Koepka returned to the golf course in January, He enjoyed a solid stretch before more recent struggles landed him at 44th in the International Series Order of Merit, well off the top-two mark that would have secured a place in LIV next year.“It has been up and down,” Koepka said of his recent play, after finishing T43 at the Singapore Open last weekend. “I’ve played some solid weeks, but I haven’t quite put myself in contention to win. It’s not that I’m playing badly - just not well enough to be up there with a chance on Sunday. That’s the next step for me.”Koepka’s 8-under-par score at Singapore was matched by Anthony Kim, who is looking to continue a comeback of his own.Kim returned to professional golf early last year after a 12-year hiatus during which he struggled with addiction and suicidal ideation. Although he was relegated in August after almost two full seasons with LIV, he hopes the January Promotions event will be his ticket to return.Regardless, the former Ryder Cup winner said he plans to make most of his pro starts next year on the Asian Tour in International Series events.“It is a long way over here. So as much as I want to compete, you know, part of my comeback to golf is being with my family,” Kim said. “And it is a lot of trouble for the family, so we will pick some events to play.”The 40-year-old also shared his future commitment to the sport.“This is something I am looking forward to and yes, regardless, I am going to play for a few more years,” he said. “I do not know how long I want to play golf for, but this is something I am committed to. I am motivated to play as good as I can, work as hard as I can, and you know, the results will speak for themselves.”

The $55bn take-private of Electronic Arts Inc has evoked several superlatives, including being heralded as the biggest leveraged buyout of all time. Part of that list is JPMorgan Chase & Co’s $20bn of financing — the largest debt commitment ever by a single bank for such a deal.It marks the biggest win yet for Wall Street lenders that have sought to fend off the $1.7tn private credit industry from financing such transactions, which carry some of the juiciest fees in the debt-underwriting business.JPMorgan made the commitment through its leveraged-finance arm, not its private credit strategy, and the biggest US bank is expected to share the risk with rival firms to create a global syndicate of underwriters, according to people familiar with the deal. The debt — expected to be rated in the single-B range — is set to be sold through high-yield bonds and leveraged loans in a cross-border, dual-currency transaction, said the people, who asked not to be identified discussing confidential details.The final structure of the sale will depend on market conditions at the time of the launch, the people said.Normally, the buying and selling of companies by private equity firms drives a significant amount of activity in the leveraged-finance debt markets. But these deals have remained muted ever since the Federal Reserve began hiking rates in early 2022.That left investors clamouring for new deals — particularly big-ticket mergers and acquisitions such as Electronic Arts — beyond the refinancing efforts dominating the market that often recycle existing debt into lower margins, sometimes repeatedly.At the heart of the demand for new paper are collateralised loan obligations — the largest buyers of leveraged loans. The rapid creation of CLOs, which package sub-investment grade loans into bonds, is driving demand for debt deals even higher.US-based CLO exchange-traded funds welcomed $674mn of inflows last week, well above the weekly average $446mn recorded over the past year, according to JPMorgan research published on Monday.“The key element, or the connective tissue we need to produce net new issuance, is M&A,” said Tal Reback, global investment strategist at KKR & Co’s credit and markets business. “There is pent-up demand and fleeting opportunities to go to market. But there is a pipeline in the works.”Evidence of that started to emerge in recent weeks. A group of banks led by Goldman Sachs Group Inc launched a $5.5bn leveraged loan to help finance Thoma Bravo’s acquisition of human-resources software provider Dayforce Inc. And the home-care business of Reckitt Benckiser Group Plc raised almost $2.4bn of debt to support its carveout to Advent International.Advent’s deal isn’t just attracting typical CLO buyers for its term loans but also interest from Middle Eastern, Asian and smaller European banks that look set to buy up to $700mn of it.While the desire for a headline deal exists, the last big leveraged buyout was for Elon Musk’s $44bn acquisition of Twitter Inc. in 2022. That left a group of banks led by Morgan Stanley stuck with about $13bn of debt, and it took until this year for them to finally move that off their balance sheets.Separately, credit markets are dealing with two sudden distressed situations that took investors by surprise. Auto-parts supplier First Brands Group filed for Chapter 11 bankruptcy, and Tricolor Holdings, a used-car seller and subprime lender, filed to liquidate, leaving lenders facing potentially hundreds of millions of dollars of losses.EA is being taken private by Saudi Arabia’s Public Investment Fund, Silver Lake Management and Jared Kushner’s Affinity Partners in a deal announced Monday. Representatives for JPMorgan, Silver Lake, PIF and Affinity Partners declined to comment. A spokesperson for EA didn’t reply to requests for comment.The jumbo deal is a welcome development for the broader private equity industry, which has been grappling with a prolonged deal drought, limiting its ability to return capital to investors, according to Jake Mincemoyer, global co-head of debt finance at law firm A&O Shearman.“That flywheel is not fully spinning yet,” Mincemoyer said, referring to a rebound in mergers and acquisitions. “The whole ecosystem needs to start trading assets again.”The debt commitment is made up of $18bn that’s expected to be funded at closing, according to a statement, and $2bn that will be in the form of a liquidity facility, the people familiar with the deal said.