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What Is Convexity Tail Hedging?
Wednesday, December 22, 2021

As discussed in our November Market Perspective, an increased frequency of low multi-year annualized returns and large drawdowns has reduced the effectiveness of long-term fixed income as a risk-reducing diversifier. This is causing many investors to seek reliable hedges to equity market volatility that can replace or compliment fixed income in that role. We believe that index option-based tail risk hedging focused on convex payoffs is a compelling solution. Please read Convexity: A Powerful and Customizable Approach to Tail Risk Hedging to learn more.





Convexity: A Powerful and Customizable Approach to Tail Risk Hedging
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Categories

  • U.S. Market Recap
  • U.S. Market Perspective
  • Market Review
  • Quick Takes
    • What Is Convexity Tail Hedging?
    • Is Low Volatility Low Risk?
    • An "All Clear" Signal?
    • An Update on the Volatility Risk Premium (VRP)
    • Should Election Year Volatility Concern Investors?
  • Flagship (Index/RA) Commentary
  • Active Overwrite Commentary
  • Active PutWrite Commentary
 

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