Allspring Global Sounds Alarm on China Risk—Volatility Storm Brewing?

Hedge funds scramble for exotic plays as Allspring’s volatility forecast hits red.

China’s economic tremors spark defensive maneuvers—because nothing says ’stable market’ like leveraged inverse ETFs.

Bonus jab: Traders now hedging geopolitical risk with crypto. Because clearly, Bitcoin fixes everything.

Andrew Claeys, head of systematic trading at Allspring Global Investments, discusses adjusting systematic strategies in volatile markets and he looks at risks surrounding Chinese stocks, known as American Depository Receipts (ADRs) or US bank-issued shares, whether the fears of delisting them from US exchanges could come to fruition and what it could mean.

Claeys also unpacks how his desk forecasts volatility for navigating headline risks; his views on the positive correlation between bonds and equities for offsetting risk and where he sees interesting opportunities for hedging in exotic trades.

Vimeo – https://vimeo.com/1081343790