What Are We Doing? A Conversation With Danny Moses, Porter Collins, and Vincent Daniel
RiskReversal Pod
00:00
The Importance of Respecting and Understanding Volas
Porter: There's a big misnomer out there. You keep hearing about hedge funds net short because you've had a VIX that's been melting from 19 to 14 over the last two months or so. Porter: When vol is super low, they can take up leverage really high. And when vol is high, conversely, they're take down their books,. So we have VIX 14. VIX 14 means they put out so much capital everywhere. That's why you see securities ping ponging all over the place Because they're putting so much leverage and so much capital into the markets. We love taking risks that it's just conversed of what people do.
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