“Exposure you should want to have to risky assets ... is proportional to the expected risk premium ... divided by the risk of those risky assets”
VH
Victor Haghani
The Rational Reminder Podcast ·
“Easy rule. Divide the BICs by 16, actually 15.9. And that is the expected daily move of the S&P or of anything you got out there.”
Harley Bassman · Alpha Exchange · Harley Bassman, The Convexity Maven
Play from 32:57
32:57
Audio streams from the publisher’s own feed. Verbatim does not host or copy it.
What was described
Calculate the expected daily move of an asset by dividing its BIC (bond implied volatility) value by 16
BICs currently 15.9 → daily move ≈ 1 % (15.9/16)
Said nearby on the same subject
“I would do volatility targeting at the portfolio level… if I would expect that the volatility going forward would be elevated, then I would cut the risk across the board at a portfolio level.”
MV
Maria Vasalu
Masters in Business ·
“It's a simple formula. And what it is, is it calculates a ratio, a number that takes your net operating income divided by your total annual debt service, your debt payments, and it gives you a number that can be used to compare.”
HL
Henry Lopez
The How of Business - How to start, run, grow and exit a small business. ·
“The inflation component in nominal bonds plays an important role… when you hold nominal bonds, that's of course exposed… the increase in bond risks has some similarities… bonds and stocks have moved together.”
CP
Carolin Pflueger and co-authors
Odd Lots ·
Moments like this, every Monday
The strongest new moments on your topics, in the speakers' own words. Free for three topics.
No card. No password. One-click unsubscribe.
Track a competitor?
Pro watches up to 25 names or phrases and emails you the morning after they are said.
See Pro, $29 a monthVerbatim quotes a short extract and links to the episode; the episode belongs to its publisher. Remove a show.