The Inflation Risk Investors Miss | Nancy Davis

In this episode of Excess Returns, Nancy Davis, founder and CIO of Quadratic Capital Management, discusses her investment strategies, particularly those behind her firm's fixed income ETFs, IVOL and BNDD. The conversation covers the use of options in investing, focusing on interest rate volatility and inflation hedging. Davis shares her insights on the bond market, the Federal Reserve's influence, and the construction of her ETFs, emphasizing how they can fit into an investment portfolio. She highlights the concept of convexity, the risks associated with being short volatility, and the importance of managing inflation risk, while also touching on the potential misinterpretations of traditional inflation hedges like gold.