Hari Krishnan, head of volatility strategies at SCT Capital, joins Jack for a wide-ranging discussion on central banks, derivatives, and market structure. Hari shares his knowledge on everything from interest rate swaps to the demise of FTX, and he argues that short-expiry options are structurally cheaper than options with longer-dated tenors. Lastly, Hari and Jack exchange thoughts on what it means to attain true expertise in a specific market discipline.
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Hari Krishnan’s book, “Market Tremors”: https://rb.gy/4l3yhj
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Timestamps:
00:00 Introduction
01:24 “Dominant Agents" In Finance
04:49 Are Central Banks Really That Powerful?
13:26 The Shadow Banking System
17:28 The Effect Of Interest Rate Changes By Central Banks
19:12 Curve Ad
25:05 Why Are Swap Spreads Negative?
27:16 Crypto Contagion & The Fall of FTX
38:56 Leverage Within Crypto
42:45 Anti-hedging In Bitcoin Miners
44:36 Volatility In 2022
58:08 The Next Phase Of This Bear Market
01:04:27 The Role Of Macro
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Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.
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