63 min listen
Andy Constan, Founder, Damped Spring Advisors
FromAlpha Exchange
ratings:
Length:
68 minutes
Released:
Jun 30, 2022
Format:
Podcast episode
Description
Market prices are impacted by a host of forces including changes in the economy, in earnings and in the stance of monetary policy. For Andy Constan, flows carry great import as well. Hitching a ride to Wall Street in 1986 at Salomon Brothers, Andy was part of a group that contributed to the Brady Commission Report, the post-mortem on the calamity that was the ’87 stock market crash. In this context, he shares his views on episodes in which flows into or out of an asset disrupted the equilibrium of supply and demand, leading to shocking movements in price. Among them, Andy describes the April 2020 negative price in front month crude, a short-lived but intense dislocation resulting from mechanical ETF flows. In furthering the discussion on liquidity, we explore the 2010 blow-up in the long dated SPX variance swap market, a trade that Andy ranks among the most attractive he has seen in his career, a result of an extreme imbalance in supply and demand. Our conversation then shifts to the present day of risk and the work that Andy is doing at Damped Spring Advisors, a research firm he founded in 2019. On his mind is the market’s capacity to adjust to a regime of higher rates, the factors that may leave QT more or less impactful and whether Fed policy ultimately leaves money tight or not. I hope you enjoy this episode of the Alpha Exchange, my conversation with Andy Constan.
Released:
Jun 30, 2022
Format:
Podcast episode
Titles in the series (100)
Eric Peters, One River Asset Management: Beginning his career in Chicago trading corn futures in the late 1980’s, Eric Peters moved into the sharp elbowed world of bond futures trading on the CBOT and then went to a bank, prop trading rates and derivatives through the 1990’s. His perspectives on the exchange rate mechanism crisis in 1992 and the bond market massacre in 1994 provide significant insight on the way in which policy frameworks invite risk taking that can ultimately lead to instability. Utilizing many of these lessons on risk, Eric founded One River Asset Management, a firm that delivers bespoke solutions to institutional investors, helping them navigate markets in the post-crisis era. As 2018 comes to a close, Eric sees a long period of adjustment to a higher volatility regime in both the risk asset complex as well as inflation. by Alpha Exchange