“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
“The interest burden of the debt is at what I would call normal historical levels.” Janet Yellen. June 2024. US Treasury Secretary Yellen (Professor Yellen, as we know her) gives a masterclass in o…| Convex Strategies
“I have been working in or around central banks for over fifty years. To my regret, as I look back on my career, I can now see that I was often guided by an evolving set of false beliefs about how …| Convex Strategies
In our discussions last month about entropy, we introduced the term “arrow of time”. “Like with all things that live in non-ergodic, path dependent space, time dependence matters. Something that ma…| Convex Strategies