About this episode

David Dredge discusses his role in fortifying client portfolios with insurance and the implications of market stress on traditional risk methodologies.

David Dredge, Founder and CIO of Convex Strategies, has spent his career in derivatives markets, on the long side of optionality and seeking value in convexity. It was great to learn more about the role he plays in fortifying client portfolios with insurance and to have him reflect on how periods of market stress expose limitations in traditional risk methodologies. Our conversation focuses on volatility supply and the structural forces that generate it. Here, David discusses the growth of structured products across equities, rates, and FX markets, and explains how regulatory frameworks, accounting treatment, and yield-seeking behavior contribute to the persistent creation of short-volatility exposures throughout the financial system. David describes Convex Strategies as a value investor in volatility, focused on sourcing efficient insurance rather than trading volatility for profit. He explains how the firm seeks to identify areas where volatility is supplied at attractive prices and where convexity can provide meaningful diversification during periods of stress. We also explore the role of leverage, correlation assumptions, and risk management frameworks in amplifying market…

More episodes of Alpha Exchange

• Franklin Parlamis, Founder & CIO, Aequim Alternative Investments · July 21, 2026 · 59 min
• David Silber, Head of Institutional Equity Derivatives, Citadel Securities · July 10, 2026 · 52 min
• The Three Types of Risk-Off · July 2, 2026 · 24 min
• Aaron Brown, Wall Street Quant and Author: Wrong Number · June 30, 2026 · 1h 2m
• Samir Patel, Global Head of Global Market Sales, Nomura Securities · June 22, 2026 · 48 min

Explore listener stats, chart rankings, contacts and more on the Alpha Exchange podcast page.