“Moral hazard is a natural concern for a policy which removes the main risk that hedge funds face when taking leveraged positions in cash-futures basis.” Kashyap, et al, March 2025 The above quote …| Convex Strategies
What if it works? Regular readers will know that this has long been our favourite question to ask central bankers and government policymakers since the implementation of “inflation” igniting strate…| Convex Strategies
“Too often, the potential range of behavior of complex systems had to be guessed from a small set of data. When a system worked normally, staying within a narrow range of parameters, engineers made…| Convex Strategies