Due Diligence Daisy Chains [FTX] S03:E12
Pirates of Finance
00:00
Where Do I Find Positive Carry Hedges?
A person asked, where do I find positive carry hedges? And he said, once again, you don't. What you do is the rest of your book is maybe long GDP or, you know, short ball in the remainder of your book. That's where you get your positive carry. And then your hedges are negative carry, but it's about the emergent. Use the negative line item like insurance. Like there's no positive carry insurance on your house. Try to find positive carry for other assets in your portfolio. Your insurance should be a negative cost. There's going to be trade offs that have a implicit short volatility bias to it to try to limit that bleed
Transcript
Play full episode
