Quantifying Structural Risk in 'Zombified' Markets | Hari Krishnan & Ash Bennington

Hidden Forces

Demetri Kofinas

Government, Business

4.8 • 1.6K Ratings

🗓️ 17 March 2022

⏱️ 52 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

In Episode 238 of Hidden Forces, Demetri Kofinas speaks with Hari Krishnan (Head of Volatility Strategies at SCT Capital) and Ash Bennington (Senior & Crypto Editor at Real Vision) about their book “Market Tremors: Quantifying Structural Risks in Modern Financial Markets.”

Since the Global Financial Crisis, market structure has undergone a dramatic shift. A combination of Central Bank policy, disintermediation of commercial banks through regulation, and the growth of passive products such as ETFs have ‘zombified’ markets. Risk has increasingly built up beneath the surface through a combination of excessive leverage and crowded exposure to specific asset classes and strategies. In many cases, historical volatility understates prospective risk.

This conversation is meant to expose you to some of the ideas behind Market Tremors, which provides a practical and wide-ranging framework for dealing with the credit, positioning, and liquidity risk that investors face in modern markets. Ash and Hari draw on the fields of statistical physics and game theory to simplify and quantify the impact of very large agents on the distribution of forward returns, and offer techniques for dealing with situations where markets are structurally risky yet realized volatility is low.

You can access the transcript and intelligence report to this week’s conversation by going directly to the episode page at HiddenForces.io and clicking on "premium extras." All subscribers gain access to our premium feed, which can be easily added to your favorite podcast application.

If you enjoyed listening to today’s episode of Hidden Forces you can help support the show by doing the following:

Write us a review on Apple Podcasts & Spotify

Subscribe to our mailing list at https://hiddenforces.io/newsletter/

Producer & Host: Demetri Kofinas

Editor & Engineer: Stylianos Nicolaou

Subscribe & Support the Podcast at https://hiddenforces.io

Join the conversation on Facebook, Instagram, and Twitter at @hiddenforcespod

Follow Demetri on Twitter at @Kofinas

Episode Recorded on 03/14/2022

Transcript

Click on a timestamp to play from that location

0:00.0	What's up everybody? My name is Demetra Caffeines and you're listening to Hidden Forces,
0:06.0	a podcast that inspires investors, entrepreneurs and everyday citizens to challenge consensus narratives,
0:14.0	and to learn how to think critically about the systems of power shaping our world.
0:18.0	I am joined today by Harry Krishnan and Ash Bennington.
0:23.0	Ash is the senior editor and crypto editor at Real Vision,
0:26.0	and Harry is the head of volatility strategies at SCT Capital.
0:30.0	They're both here to talk about a book that they've co-authored,
0:33.0	which takes many of the lessons of Harry's last book, The Second Leg Down,
0:37.0	and incorporates them into a practical framework for dealing with credit, positioning,
0:42.0	and liquidity risks that investors face in modern markets.
0:46.0	You can access the transcript and intelligence report to this episode
0:50.0	through the Hidden Forces website, where you can also become a premium subscriber today.
0:55.0	Since this episode deals with markets and investing, I want to make it absolutely clear
1:00.0	that nothing we say on this podcast can or should be viewed as financial advice.
1:05.0	All opinions expressed by me and my guests are solely our own opinions
1:10.0	and should not be relied upon as the basis for financial decisions.
1:14.0	And with that, I bring you my conversation with Harry Krishnan and Ash Bennington.
1:23.0	Ash and Harry, it's great having you both on the podcast.
1:26.0	Harry, you were on the podcast back in spring of 2020 for what was a really awesome, awesome episode.
1:34.0	I learned so much in preparing for that, and I remember that people really loved it.
1:38.0	And Ash, we are good friends, you and I.
1:41.0	We've known each other for several years.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Demetri Kofinas, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Demetri Kofinas and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.