Charlie McElligott, Nomura’s cross-asset macro strategist, is warning about over $300 billion in autocallable structures concentrated in mega-cap tech stocks, described as a coiled spring capable of triggering a volatility wave. Year-to-date debt issuance in the artificial intelligence and datacenter sector has reached $269 billion, approximately 12 times the annual average observed between 2015 and 2024. If major tech stock prices simultaneously breach autocall barriers, holders of these products will be forced to unwind their hedges urgently, creating a sudden surge in options demand and a non-linear spike in volatility. Global corporate bond issuance has simultaneously risen 61% year-over-year, adding to market pressure. McElligott notes that the VIX does not adequately reflect concentrated single-name exposures or the mechanical dynamics of structured product unwinds.
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