In episode 96, Alex Proimos speaks with Nancy Davis, managing partner and chief investment officer at Quadratic Capital Management.
This episode discusses the macroeconomic environment and the potential of inflation, stagflation and deflation. We explore the increasing fixed income volatility despite the continual central bank intervention and low equity volatility. We then delve into the motivation in creating a fixed income ETF using TIPS and OTC derivatives to hedge the relative interest rate movements arising from falling short-term interest rates or rising long-term interest rates. Finally, we touch on the challenge of attaining an ESG tick-of-approval for an inflation protection product.