

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

Aug 15, 2024 • 53min
Oliver Brennan, FX Volatility Strategist, BNP Paribas
Oliver Brennan, an FX volatility strategist at BNP Paribas with a physics background, dives into the intricacies of market volatility episodes, including the Euro-Swiss break and Brexit. He explains the current dynamics affecting the Japanese Yen, emphasizing the risks from extended carry trades and the lack of corporate supply. Additionally, Oliver shares insights on the interplay of collaboration and competition in trading, underscoring how evidence-based strategies can illuminate the unpredictable nature of financial markets.

Aug 12, 2024 • 17min
Markets are Never Say Never
Dive into the volatile world of financial markets where chaos reigns supreme. Discover how volatility emerges as the only truly resilient asset during market upheavals. Reflect on the recent seismic shifts in the Nikkei and VIX, revealing the intricate dance of liquidity and risk management. Gain insights into the complexities of market dynamics and the significance of innovation in financial products. This episode offers a thought-provoking analysis that will leave you pondering the unpredictable nature of trading.

Aug 8, 2024 • 55min
Dan Greenhaus, Chief Strategist, Solus Alternative Asset Management LP
Dan Greenhaus, Chief Strategist at Solus Alternative Asset Management, discusses his extensive experience in distressed and high-yield investing. He highlights the significance of gauging market consensus and understanding pricing intricacies. Dan examines the current economic climate and the Federal Reserve's interest rate policies, noting their unexpected impact on consumer behavior. He draws attention to indicators like jobless claims and Visa's earnings, while reflecting on how past easing cycles often missed timely interventions. His insights reveal the balance between theory and real-world market dynamics.

Aug 3, 2024 • 40min
Lisa O'Connor, Head of Global Model Portfolios & Co-CIO for Multi-Asset Solutions, BlackRock
Lisa O'Connor, Co-CIO of Multi-Asset Solutions at BlackRock, shares her insights from navigating market risk cycles. She emphasizes how crises prompt investors to focus on relative value. Delving into asset allocation, she discusses the balance of quantitative and fundamental factors, highlighting the benefits of diversifiers like gold. Lisa also examines the effects of the Fed's easing cycle, AI's role in financial analysis, and strategies for cautious investment amid changing market dynamics, especially concerning tech spending.

Jul 30, 2024 • 16min
Man and Markets On Wire
The discussion draws intriguing parallels between Philippe Petit's 1974 tightrope walk and today’s precarious markets. It highlights the recent downturn of the MAG 7 stocks and the resulting shifts in market correlations. The analysis of the VIX curve reveals striking patterns of contango and backwardation, adding layers to investor strategies. Political volatility, particularly surrounding Biden's candidacy, showcases the intricate dance between politics and market movements, emphasizing the need for adaptive strategies in uncertain times.

Jul 12, 2024 • 14min
Vol Laundering and the Portrait of a Perfect Hedge
Exploring vol laundering, honest risk management, and the concept of a perfect hedge in the investment landscape. Delving into anti-fragility, options-based insurance, and the importance of balancing risk and reward for a strong portfolio. Highlighting zero cost collars, hedge overlays, and the critical aspects of creating a perfect hedge for optimal protection and resilience.

Jul 11, 2024 • 38min
Michelle Meyer, Chief Economist, Head of the Mastercard Economics Institute
Michelle Meyer, Chief Economist at MasterCard, discusses leveraging real-time transaction data for economic analysis, revealing insights on consumer trends like the Swift Lift effect from Taylor Swift concerts and increased demand along the April solar eclipse line of totality. The conversation explores resilient US consumers post-pandemic, regional labor market disparities, goods prices, inflation trends, and the complexity of financial conditions and monetary policy.

Jun 27, 2024 • 17min
Cuban’s Collar is Jensen’s Alpha
Jensen Huang, owner of NVDA shares, discusses Mark Cuban's well-timed collar trade on Yahoo and its wealth accumulation impact. The podcast explores collar trades, Mark Cuban's investment strategy, and Jensen Huang's wealth management opportunities through options trading and hedging strategies.

8 snips
Jun 20, 2024 • 16min
Correlation, Crowding and Convexity
Exploring the dispersion trade, pricing of vol and correlation, and the potential risks during risk-off episodes. Analyzing stock correlation levels, volatility, and market risk. Understanding market volatility events, risk-off conditions, and challenges in volatile markets. Exploring market dynamics, policy responses, and the importance of equity index insurance amid uncertain macroeconomic factors.

Jun 18, 2024 • 49min
Garrett DeSimone, Head of Quantitative Research at OptionMetrics
Garrett DeSimone, Head of Quantitative Research at OptionMetrics, discusses his dissertation on event risk premia in single stocks and the implications for option pricing. They delve into the impact of macro events on options trading, the challenges of pricing options accurately, and the evolving nature of option markets. They also explore hedging strategies in a low VIX environment, portfolio scaling using implied downside volatility, and developing a model for calculating implied dividends in the options market.


