Posts tagged ‘market volatility’

From the desk of risk: How to Hedge Tail Risk Efficiently



We can give three simple reasons to support the use of volatility products to hedge tail risk in fixed income portfolios. First, equity volatility and bond prices have a strong conceptual link.  If you think of a corporate bond as functionally equivalent to a risk-free asset (like a Treasury bond)…

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Helping DB Plan Sponsors Sleep at Night



In my previous blog, I talked about risk as it relates to managing a defined benefit (DB) pension plan. The long and short of it is that risk is what happens when DB plan sponsors are busy making other assumptions. Today, the combination of several factors—including market volatility, low…

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