derivatives

“Spectacular blow-ups that we've heard over time are usually on that side. They've been short, they've been levered, they don't have guardrails, and probably a little arrogant, and not being able to You know, put in a stop loss and manage risk and thinking, you…”

“Strategic tilting is entirely managed through derivatives. It benefits from the liquidity management that our portfolio completion team runs and the counterparty risk that we represent as a fund as a whole.”

“The development of derivatives, lending and borrowing, trading tools, tax lot reporting, order management systems, I mean, a lot of that infrastructure And a lot of those on-ramps were not in place back then, and you're dealing with a market that is much, much…”

“I'm not going to go to four guys in a shoe box and give them a mandate where they're using derivatives and prime broker. And no, I, you go to large firms, you give them a sharp knife and you trust them to use it.”

“The other common way, as we've experienced in the UK, where the UK, of course, has gone through a meltdown because they were using derivatives. They were leveraging. So they were only using 50% of their assets levered To be hedged, and the other 50% still rema…”

“And so the shift from accrual accounting to mark to market accounting, which sounds pretty arcane, but in banking accounting terms, it was a seismic shift and produced some very large swings on the income statement.”

“In the last year and a half, Clients have systematically increased either their allocation of fixed income, or they've increased their hedge by adding more derivatives to the portfolio.”

“If you can borrow at the risk-free rate, you can just lever your tangent portfolio. You can make more money per unit of risk. Well, can you do that? Can you borrow at the risk-free rate? Some people can. You can do it through the use of derivatives.”