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.
Follow Hari Krishnan on Twitter https://twitter.com/HariPKrishnan2
Follow Jack Farley on Twitter https://rb.gy/uesguv
Follow Forward Guidance on Twitter https://rb.gy/cy0dki
Follow Blockworks on Twitter https://rb.gy/igyzsj
Hari Krishnan’s book, “Market Tremors”: https://rb.gy/4l3yhj
--
This episode is sponsored by Curve. Curve is unlike any other credit card. It gives you the power to connect multiple credit and debit cards into one, convert your cashback into crypto rewards, Go Back in Time ®, create Smart Rules, and more. Apply now through https://fgpodcast.link/curve, you’ll earn $20 in Curve Cash after your first transaction. So sign up today! Terms and conditions apply.
--
Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter:
Market commentary, charts, degen trade ideas, governance updates, token performance, can’t-miss-tweets and more. Subscribe to the Blockworks Research “Daily Debrief” Newsletter:
Find out more about the Blockworks video editor role here: https://blockworks.co/careers/
--
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
--
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.