"Runaway inflation or continued deflation?" "Rising rates or rates dropping below the zero bound?" These are just some of the questions investors are starting to ponder as the economy re-opens. The current interest rate environment is particularly complex because there are so many competing forces and known unknowns on the horizon. Quadratic Capital's Nancy Davis rejoins the podcast to talk investors through the current uncertainty and explain how her firm's increasingly popular Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL) simultaneously protects against inflation and interest rate volatility.
Show Notes
4:45 - A quick two billion: Why has IVOL increasingly resonated so much with investors?
6:45 - How does IVOL offer higher distributions than funds like the Schwab U.S. TIPS ETF (SCHP) and iShares TIPS Bond ETF (TIP)?
10:30 - Who is holding IVOL: Break down of institutional vs. retail ownership
13:00 - How are investors using IVOL in their portfolios?
15:15 - Nancy's current outlook for U.S. interest rates?
19:00 - What would it take policy-wise for the yield curve to widen meaningfully?
26:45 - How concerned do investors need to be with inflation right now?
36:00 - Rates, credit spreads and understanding what you own: IVOL within a broader portfolio strategy
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