Tail Risk Hedging: Theory and Practice

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Tail Risk Hedging: Theory and Practice image
ISBN-10:

1782720804

ISBN-13:

9781782720805

Released: Jul 17, 2014
Publisher: Risk Books
Format: Paperback, 304 pages

Description:

Tail Risk Hedging: Theory and Practice is essential reading for investors who want to improve their understanding of this investment strategy and its role and place in institutional portfolios in order to choose successful asset allocation, portfolio construction and hedging strategies.

Since the global financial crisis, investors have been faced with the difficult question of how to generate returns in a more uncertain and volatile environment while controlling the potential downside. Traditional risk control methods such as diversification have been shown to have limits and as a result tail risk hedging has emerged as one possible answer, with several investment managers reporting the tail risk hedging business to be their fastest area of asset growth in the wake of the crisis.

This is the first ever edited volume on tail risk hedging, which can serve as a primer and an authoritative guide for institutional investors. Edited by leading experts in the area Andrew Rozanov and Ryan McRandal, based at Permal and Peters Capital Group respectively, the book brings together a representative cross-section of views from practitioners who are active in the space. Chapters include:

- An Introduction to Tail Risk Hedging
- Strategic Tail Risk Management: a Pension Fund s Perspective
- An Asset Allocator s Approach to Tail Risk Hedging
- A Systematic Approach to Tail Risk Hedging

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