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Animal Spirits Podcast

Talk Your Book: Customizing Your Assets

Aug 21, 2023
The podcast discusses customizing assets, utilizing structured notes as a hedge, innovations in defined outcome products, shifting utilization from income to growth notes, and the future of direct-to-consumer access and asset customization.
30:37

Podcast summary created with Snipd AI

Quick takeaways

  • Investors are seeking a more one-to-one correlation between stocks and bonds as a hedge in down markets.
  • Structured notes offer customization, flexibility, and unique risk-return profiles tailored to specific outcomes.

Deep dives

Shift in correlation between stocks and bonds in different market environments

William Bernstein's book discusses how the correlation between stocks and bonds changes in inflationary and non-inflationary environments. Last year's stock and bond market decline challenged the traditional perception that bonds provide a hedge in down markets. As a result, investors are rethinking the relationship between stocks and bonds, seeking a more one-to-one correlation as a hedge. Halo, a marketplace for protective investment solutions, offers a hedge that hedges against the market falling beyond a certain cap. This hedge aims to provide investors with a reverse return as the market declines.

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