Our deep dive conversation into hedging interest rate volatility and inflation, with Nancy Davis, Founder and Managing Director of Greenwich, Connecticut-based Quadratic Capital Management LLC. We discuss markets, interest rates and interest rate volatility, and the risk of inflation making a comeback, from the perspective of IVOL being a strategic portfolio diversifier as well as being opportunistically priced. Davis discusses the asymmetry of being long 'convexity,' a way of investing in interest rate volatility where the potential for return is disproportionately greater than the investment because the risk is mis-priced.
We discuss how the Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL:NYSE), her firm's ETF, is a solution for investors looking for investment options that have little or no correlation(do not behave the same way at the same time) to equities and bonds, and in the context of today's investment climate, represents an asymmetrical opportunity/addition that may be opportunistic and complementary to today's traditional portfolios.
The price of interest rate volatility also happens to be at an all time low, lower than even before the GFC. By the time we're done talking about what seems an otherwise complicated strategy, you'll be able to understand what it is. The rates market is the largest segment of financial markets and until now was for all intents and purposes, inaccessible by individual investors.
Nancy Davis - https://www.linkedin.com/in/nancyquadratic
IVOL ETF - https://www.ivoletf.com
Quadratic Capital Management LLC - https://quadraticllc.com
IVOL White Paper - https://kfafunds.com/reports/ivol-white-paper
IVOL Presentation - https://www.ivoletf.com/wp-content/uploads/2021/01/IVOL-Presentation.pdf
Mike Philbrick, CEO, Resolve Asset Management SEZC - https://www.linkedin.com/in/michaelphilbrick
Rodrigo Gordillo, President, Resolve Asset Management SEZC - https://www.linkedin.com/in/rodrigogordillo
Resolve Asset Management - https://investresolve.com
Resolve AM's Featured Research - https://investresolve.com/research
Resolve AM's Blog - https://investresolve.com/blog
Pierre Daillie, AdvisorAnalyst.com - https://www.linkedin.com/in/pierre-daillie-advisoranalyst
AdvisorAnalyst.com - https://advisoranalyst.com
Welcome to Raise Your Average, our collaboration with ReSolve Asset Management's Mike Philbrick, Rodrigo Gordillo and Adam Butler, is our deep dive journey into learning from the truly remarkable people in, around, and behind the scenes, the world of investing. Through conversations with leaders in the investments game, we peel back the layers of the onion on how these holders of the keys to the kingdom allocate their time, their energy, and their dollars.
We are all students and we are all teachers. Jump in with us and raise your average, as we raise ours.