Scott Peng, PhD, Founder and CEO/CIO, Advocate Capital Management
Alpha Exchange
00:00
Is There a Risk Recycling Process on the Rate Side?
I was specifically interested more on the rate derivative side because in the equity derivative side, a long dated, let's say, reverse click K, which is a common retail product. That's the sort of thing that can get repackaged into whether it's correlation swaps or variance swaps. I was curious, is there a similar sort of risk recycling process that happens on the rate side? On the rate side, pretty much all the structures that I've seen and been involved with are almost hedged out immediately Because swab shins can go out to 10, 30 years. So they actually want to keep that risk, as you said, for, you know, specific purposes. But on
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