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Marko Kolanovic Is Back: ‘Systematic De-Leveraging Is Behind Us’, Markets To Rally
All clear!
Or at least that appears to be the message from JPMorgan's resident "Gandalf", Marko Kolanovic.
You'll recall that just days prior to the market meltdown that ended up catalyzing what BofAML guesstimated was some $200 billion in forced selling from CTAs and risk parity, Kolanovic suggested that things probably wouldn't deteriorate enough to trigger broad deleveraging from the systematic crowd he's made a name for himself warning about over the past several years. To wit:
Consistent
Heisy, please tell me if I’m wrong, but isn’t SVXY literally doomed to the same fate as the other short vol ETPs? I rarely buy derivatives, but I’m personally buying short-dated far out of the money puts on SVXY every week for the next year. Premiums are cheap and pay off huge, and we all know when these things go down they do so in Grand fashion.
I would value your perspective on this.
me too.
sb