

Alpha Exchange
Dean Curnutt
The Alpha Exchange is a podcast series launched by Dean Curnutt to explore topics in financial markets, risk management and capital allocation in the alternatives industry. Our in depth discussions with highly established industry professionals seek to uncover the nuanced and complex interactions between economic, monetary, financial, regulatory and geopolitical sources of risk. We aim to learn from the perspective our guests can bring with respect to the history of financial and business cycles, promoting a better understanding among listeners as to how prior periods provide important context to present day dynamics. The “price of risk” is an important topic. Here we engage experts in their assessment of risk premium levels in the context of uncertainty. Is the level of compensation attractive? Because Central Banks have played so important a role in markets post crisis, our discussions sometimes aim to better understand the evolution of monetary policy and the degree to which the real and financial economy will be impacted. An especially important area of focus is on derivative products and how they interact with risk taking and carry dynamics. Our conversations seek to enlighten listeners, for example, as to the factors that promoted the February melt-down of the VIX complex. We do NOT ask our guests for their political opinions. We seek a better understanding of the market impact of regulatory change, election outcomes and events of geopolitical consequence. Our discussions cover markets from a macro perspective with an assessment of risk and opportunity across asset classes. Within equity markets, we may explore the relative attractiveness of sectors but will NOT discuss single stocks.
Episodes
Mentioned books

11 snips
Dec 2, 2024 • 15min
20 Things to Do Before You Ask for a Price (Part 4)
In this insightful discussion, the speakers delve into the key aspects of effective derivative sales trading. They highlight the importance of understanding volatility and risk assessment to enhance client relationships. The role of the sales trader as a communicator is emphasized, especially in navigating complex option pricing. Additionally, they explore the dynamics of bid/offer in relation to implied volatility, revealing how knowledge can add alpha to the trading process. Overall, it's a deep dive into the nuances of risk transfer in today's electronic markets.

6 snips
Nov 26, 2024 • 46min
Rocky Fishman, Founder and CEO, Asym 500 LLC
Rocky Fishman, Founder and CEO of Asym 500 LLC, is a derivatives expert specializing in systematic trading strategies. He delves into the nuances of leveraged ETFs, revealing how these products can create unexpected buying and selling pressure simultaneously. Rocky discusses the wild August 5th VIX event, emphasizing how swiftly market tails can emerge. He also highlights the critical role of end-of-day trading dynamics and the vital importance of monitoring liquidity in the current volatile market landscape.

Nov 26, 2024 • 17min
20 Things to Do Before You Ask for a Price (Part 3)
Explore the essential steps before pricing in options trading, including how to assess corporate actions and their impact on risk capital. Delve into implied versus realized volatility and its significance in market maneuvers. Discover the importance of strike skew in evaluating potential gap risks. With practical insights from financial experiences, this discussion emphasizes strategic decision-making while wishing listeners a wonderful Thanksgiving.

Nov 23, 2024 • 50min
Dominique Toublan, Head of US Credit Strategy, Barclays
Dominique Toublan, Head of Credit Strategy at Barclays and a former physicist, discusses the dynamics of the credit market as the U.S. election approaches. He analyzes the impact of macroeconomic challenges and global demand for U.S. spread products. Touching on credit derivatives, he highlights how a scientific approach aids in navigating market complexities. Dominque also shares insights on risk management, emphasizing lessons from past market crises, and explores the rise of algorithm-driven trading in credit markets.

Nov 19, 2024 • 17min
20 Things to Do Before You Ask for a Price (Part 2)
Delve into the intricacies of institutional options trading dynamics. Discover how understanding a client's needs and market conditions can impact pricing strategies. Explore the significance of timing and the nuances of earnings volatility in options trading. A structured checklist guides traders through evaluating order types, market depth, and volume. Learn the challenges posed by different option deltas and the critical role of collaboration in effective risk management.

Nov 15, 2024 • 13min
20 Things to Do Before You Ask for a Price (Part 1)
Dive into the art of effective price discovery with vital strategies for salespeople. Discover the importance of knowing your client and understanding the risk environment. Learn how to identify what motivates a trade and the nuances of lesser-known stocks. The discussion emphasizes the need for savvy communication with clients, especially when time is of the essence in volatile markets. Whether facing major macro events or obscure tickers, these insights aim to enhance trading strategies and client relationships.

Nov 12, 2024 • 16min
Post Election Reflection (on Vol)
The podcast dives into the aftermath of a surprising Trump win and the subsequent drop in market volatility. It discusses the intricacies of risk management in finance, emphasizing the importance of hedging strategies in tumultuous political times. Bitcoin's relentless ascent is highlighted, alongside insightful market reflections on leadership changes in the U.S. Lastly, it advises considering protective measures for investments, ensuring a balance between potential gains and safeguarding against unforeseen risks.

Nov 5, 2024 • 50min
Shailesh Gupta, Head of Structural Alpha, Simplify Asset Management
Shailesh Gupta, Head of Structural Alpha at Simplify Asset Management, shares insights from his expertise in derivatives and carry strategies. He discusses the intriguing concept of "carry" in financial markets, explaining its significance in option trading. Shailesh outlines risk management lessons from the VIX products crisis and emphasizes innovative yield-enhanced ETF strategies. He also delves into navigating interest rate volatility and the dynamics of bond markets, providing listeners with a clear perspective on trading in today's challenging environment.

Nov 1, 2024 • 57min
Meb Faber, Founder and CEO, Cambria Investment Management
Meb Faber, Founder and CEO of Cambria Investment Management, shares insights on navigating market highs and the benefits of trend-following strategies. He argues that investing at all-time highs can be advantageous, citing data that supports continued uptrends. Meb emphasizes the significance of shareholder yield, especially in foreign markets, and discusses innovative tax strategies that optimize investment returns. The conversation offers valuable takeaways for managing risks and enhancing portfolio performance in a dynamic economy.

Oct 26, 2024 • 21min
The DOTS (Discounting of Trump Success)
The podcast dives deep into how Wall Street prices in the uncertainty surrounding the upcoming election and Trump's potential impact. It highlights the phenomenon of elevated option premiums reflecting the market's fear. Insights from betting platforms and early voting data add an intriguing layer to understanding election probabilities. The discussion also touches on the unusual scenario of high volatility coupled with low correlation in stock prices, unpacking its implications for investors. A compelling look at market behavior and political risk awaits!


