Allspring Global Discusses China Risk and Volatility Strategies
Andrew Claeys, head of systematic trading at Allspring Global Investments, highlights the challenges of navigating volatile markets, particularly focusing on risks tied to Chinese stocks traded as American Depository Receipts (ADRs). The potential delisting of these ADRs from U.S. exchanges remains a critical concern, with implications for cross-border investment flows.
Claeys outlines his desk’s approach to forecasting volatility, emphasizing its role in managing headline-driven market swings. The discussion also touches on the evolving correlation between bonds and equities as a risk-offset mechanism, alongside emerging opportunities in exotic hedging strategies.