FICC Focus All Options Considered: Bloomberg Volatility Forum NYC 2025
Nov 4, 2025
Ben Eifert, Managing Partner at QVR Advisors, discusses the appeal of equity options for selling amid market dislocations. Diego Parrilla, CIO at Quadriga, shares insights on gold's strength and the complexities of commodities pricing dynamics. Ilya Gofshteyn, Head of Research at Capstone, explains the impacts of political interventions on rates volatility. The trio emphasizes the growing role of retail participation in equity derivatives and warns about the flaws in 'hedged' retail products, highlighting a need for better risk awareness.
AI Snips
Chapters
Books
Transcript
Episode notes
Rates Volatility Tied To Policy Dispersion
- Narrowing Fed rate forecasts compressed front-end rates volatility and flattened parts of the vol surface.
- Rate vol upside remains if growth data deteriorates or if the Fed must cut aggressively.
Use Short-Dated Rates Selling Tactically
- Use short-dated rates volatility selling tactically rather than as a permanent allocation.
- Treat income strategies in front-end rates as tactical given diminished downside in implied vol.
Equity Vol: Low Realized, High Premium
- Equity vol has low realized levels but an elevated risk premium due to VIX stubbornness and ETP flows.
- Low stock correlation has driven extreme dispersion demand, leaving dispersion entry levels unattractive.
