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.