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Odd Lots

Here’s What’s Happening With Those Korean Structured Notes That Bet Against Market Volatility

Odd Lots

Bloomberg

Business, News, News Commentary, Investing, Business News

4.52K Ratings

🗓️ 9 April 2020

⏱️ 42 minutes

🧾️ Download transcript

Summary

Earlier this year on Odd Lots, we did an episode about Korean structured investment products that were sold to retail investors, whose performance was tied to various market indices around the world. Crucially, those payouts were premised on there not being a major crash in those world markets. Obviously, we’ve seen quite the crash. So, for this week’s episode, we’ve gone back to Benn Eifert, the CIO of QVR Advisors, to check out the state of them now. And we also talk, more broadly, about the extreme volatility we’ve seen around the world, and what drove that, and whether or not we’ve seen the worst.

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Transcript

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0:00.0

With Bloomberg you get the story behind the story, the story behind the global birth rate,

0:04.7

behind your EV batteries environmental impact, behind sand. Yeah, sand, you get context.

0:10.8

And context changes everything. Go to Bloomberg.com to get context. Hello and

0:25.0

I'm Joe Wiesendall. And I'm Tracy Allaway.

0:30.0

I'm Tracy Allaway.

0:33.0

Tracy, so you know what a sort of depressing phenomenon has been lately?

0:38.0

You're going to have to narrow that down, Joe.

0:41.0

Yeah. Right, That's a very broad category. A very micro depressing phenomenon is that a lot of our recent episodes that we've done, which we sort of

0:56.0

discussed in a very theoretical sense, have unfortunately started to become

1:00.8

relevant extremely quickly. Yeah, you're absolutely right.

1:04.4

One of the ones that springs to mind is the one we did with Claudia Somme back in,

1:09.7

I think it was January or February about actually giving people money as a form of economic stimulus in order to stay off recession and now we're sort of seeing that actually happen in the U.S.

1:21.0

Although obviously there are issues in a wider debate about the way

1:25.4

that's currently being done. Yeah, absolutely. Another one, and I would say

1:30.8

this episode that we're going to do even more than any other on Twitter several times a week

1:38.1

People ask for updates of it. So there's one in particular where I'm always getting tweets it's like hey what's going on with what you talked about that one episode I'm curious if you sort of have been getting the same one.

1:51.0

Yeah I absolutely have.

1:53.0

I know exactly what episode you were talking about and it was a really good one.

1:57.4

It's Korean structured products and not only have I been getting the same tweets with the same questions and people asking for a general

2:05.3

update and what's going on with the structured products as well as the overall options market.

2:11.3

But over in Asia, we've also been doing a few stories on it as well and it turns

2:16.8

out there's quite a lot that's been happening with these.

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