42 min listen
Vishnu Kurella, Macro Portfolio Manager
FromAlpha Exchange
ratings:
Length:
54 minutes
Released:
Jun 17, 2022
Format:
Podcast episode
Description
Trading convertible bonds on emerging market underlyings in the pre-GFC period, Vishnu Kurella quickly learned that even indices can experience enormous daily moves. A macro portfolio manager who evaluates opportunities through the lens of optionality, he shares the lessons learned from trading through the frequent episodes of crisis that characterize modern markets. In this context, Vishnu emphasizes liquidity and the implications for being able to unwind trades without excessive friction. In his rendering, open-mindedness is also a critical part of the risk management process.Here, it becomes important to continuously look for shifts in the macro risk regime and to be prepared to re-underwrite existing exposures as appropriate. From here, we jump to considerations in trade implementation and seeking to overlay an expected distribution of outcomes relative to that which is implied by option prices. Lastly, we talk as well about the current risk climate, one in which equity markets have been punished by inflation and Fed policy uncertainty. Vishnu shares his views on the pressure points. Noting the incredibly favorable environment for corporates in 2021 in which both base rates and credit spreads were extremely low, he sees something considerably more fragile now. I hope you enjoy this episode of the Alpha Exchange, my conversation with Vishnu Kurella.
Released:
Jun 17, 2022
Format:
Podcast episode
Titles in the series (100)
Alberto Gallo, Partner and Portfolio Manager, Algebris Investments: Earning his chops as a macro economist on the sell-side, Alberto Gallo has seen the pendulum of risk swing from extreme fear to euphoria. During his tenure at Goldman Sachs and then at RBS where he ran the Global Macro Credit Research product, Alberto provided buy-side clients with key insights on seminal volatility events like the Global Financial Crisis and the Eurozone Sovereign debt crisis. Now, as a Partner at Algebris Investments, Alberto leads the firm’s Macro Strategy effort, a credit-oriented portfolio designed to navigate the ever tricky terrain of present-day markets. Our conversation considers portfolio construction in a world starved of yield, of low cross-asset risk premia, and one in which the potential for more drastic policy response may be on the horizon. Alberto’s views on today’s regime of monetary policy point to the side effects that result from negative rates, as the banking system suffers, an by Alpha Exchange