Learning From Market Tremors | Hari Krishnan

Forward Guidance

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.