Ep. 56: Benn Eifert On Retail Options Boom, Over-Complex Derivatives, and Managing Tail Risk

  Benn is the managing member and CIO of QVR. He was previously co-founder and co-portfolio manager of Mariner Coria in New York. Before that he was Head of Quantitative Research and Derivatives Trader for the Wells Fargo proprietary trading desk, which became Overland Advisors. He started his career as an emerging markets macroeconomist at the World Bank. He holds a PhD in Economics from UC Berkeley. In this podcast, we discuss:

1. How derivative markets changed after the 2008 financial crisis.
2. The centrality of listed derivatives.
3. Why understanding supply-demand dynamics is important.
4. How complexity of strategies doesn’t give you an edge.
5. Do short vol strategies work?
6. How to manage convexity and tail risk.
7. Derivatives to replace bonds as safe haven hedge?
8. What risks are investors focusing on since COVID?
9. Common mistakes by quants.
10. Book that influenced Benn: The House of Morgan (Chernow).

You can access the transcript here.

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(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)