Seminars

Risk measurement for risk arbitrage strategies

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Date: 11-10-2003
Start Time: 5:30pm
End Time: 7:00pm
Speaker: Allan M. Malz, RiskMetrics Group
Location: Interschool Lab, Schapiro CEPSR

ABSTRACT

We present the analytics and data required to do a risk analysis of some "typical" hedge fund strategies, such as a Eurodollar futures butterfly, convertible bond arbitrage, and an index volatility skew strategy. We describe each strategy and give its motivation, and show how to decompose the strategies into the underlying risk factors, and how to measure different risk types.

BIO

Allan M. Malz is head of research at RiskMetrics Group. He joined RiskMetrics Group at its spinoff from J.P. Morgan in September 1998. Allan spent most of his earlier career at the Federal Reserve Bank of New York as a researcher and foreign exchange trader. He headed up the Fed open market and foreign exchange desks' efforts to improve market monitoring and analysis. Along the way, Allan was a risk manager at Credit Suisse First Boston. Allan's research has been published in a number of industry and academic journals, including Risk, the Journal of Risk, the Journal of International Money and Finance, and the Journal of Derivatives. He has a doctorate in economics from Columbia University.