In this episode, we discuss:
- How market behaviour is often intertwined
- Why Cem chose to manage outside capital
- The thinking behind institutional market moves
- How the global pandemic affected markets
- Dealer flows
- Feedback loops
- Delta hedging
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00:00 - Intro
02:17 - Cem’s background and current work
19:18 - The decision to manage outside money
24:06 - The trades that institutions like to make
30:22 - Feedback loops within markets
34:17 - The dynamic between futures and options
51:15 - Using Econophysics to find hedging methods
53:40 - Building various volatility models and research using toy models
57:05 - Approaches to Delta hedging
01:00:11 - Changes to qualitative features of overnight indices
01:03:12 - Investment products on the VIX and effects on the S&P 500
01:10:09 - The feedback loop between inflation, deflation and central bank rate policies
01:20:01 - Whether or not there is an asymmetry between deflation and inflation risk