Convexity Trades for a Changed Paradigm

Featuring Ben Melkman

Ben Melkman is a master of derivatives and trade structuring, having been mentored by some of the legends of the hedge fund business. In this Master Class, Ben explains his approach to identifying mispricings and gaining leverage from options in shifting economic paradigms. Filmed on February 9, 2017 in New York.

Published on
28 February, 2017
Derivatives, Credit Market, Macro
52 minutes
Asset class
Currencies, Equities, Bonds/Rates/Credit


  • DC

    Dean C.

    1 9 2018 12:01

    0       0

    This was absolutely outstanding. The dialogue was very two way and Mike’s ability to ask the right follow on questions is a powerful additive to Ben’s lucid articulation of a clearly highly analytic thought process on risk and opportunity. This was a tour de force.

  • my

    markettaker y.

    4 8 2018 05:54

    1       1

    link to cheat sheet:

  • PD

    Ph D.

    10 11 2017 01:18

    0       0

    Could you please put an updated link to the notes (the cheat sheet)? Thanks

  • V!

    Volatimothy !.

    15 9 2017 01:59

    0       0

    Bens methods of interacting with people are underestimated. Too often people want info instead of ideas. One person can only contribute so much by themself.

  • JW

    James W.

    31 7 2017 03:26

    0       6

    Starting with about 18 minutes of small-talk and chit-chat is not a good use of my time. I'm sure he has much to convey, and an outstanding interviewer to bring it out, but please don't do this.

  • jt

    james t.

    11 6 2017 21:37

    1       0

    please forward the link to the notes. thanks.

  • JM

    Julian M.

    20 5 2017 06:30

    1       0

    Hi Milton, Please provide the date when the Ben Melkman interview was completed. Thank-you. Julian

  • AC

    Andrew C.

    4 4 2017 05:59

    1       0

    Sorry, Milton, I have been sitting on a beach for the past few weeks and only just now catching up. Would you be able to update the link to the cheat notes; your 9th March Link is not working anymore. Thanks

  • jh

    john h.

    13 3 2017 15:57

    4       0

    Conceptually, one of the best interviews I've seen here. A bit hard to put into actual practice, particularly if you do not have access to institutional level trades, but still possible if you give it enough thought. If you want to be spoon fed, this ain't the place to be.

  • DF

    Dominic F.

    13 3 2017 11:22

    5       1

    I was watching this interview and trying to imagine any politician that could understand just what these guys are talking about. They have no chance ;-)

  • ES

    Edward S.

    12 3 2017 20:23

    2       0

    Finally some talk about the oddity that is 30yr swap spreads. Loved everything in this interview

  • M.

    Milton ..

    9 3 2017 19:31

    0       0

    Hey everyone, here is an updated link to the awesome cheat sheet:

  • IZ

    Ileana Z.

    7 3 2017 01:52

    0       0

    Is it possible for RV to give pertinent info for those of us who might want to invest in some of the funds that are presented?

  • M

    Mark .

    6 3 2017 23:22

    0       0

    I never heard any of that stuff. That was way over my head but I’d love to hear those guys talk about more general / accessible subjects, too, which RV is very good about. I love this service.

  • DS

    David S.

    5 3 2017 20:35

    2       0

    Great Dialog. An interview can be upgraded to a dialog when both parties are knowledgeable and sharing ideas. In addition, MG is trying to help us keep up. DLS

  • MB

    Matthias B.

    5 3 2017 20:09

    2       0

    M Green is really doing a great job. I am looking forward to see more from him; what about a discussion w. Chris Cole

  • GG

    Gerald G.

    5 3 2017 15:59

    0       0

    Another thought provoking interview. I like this one in particular because it's all about strategies and identifying changing dynamics without judgment about the dynamics.

  • LC

    Luiz C.

    5 3 2017 11:33

    12       0

    When Michael Green is involved, RV content is guaranted to be top quality. Please dont bother about the irrelevant neg"hummm" comments, keep on the good work and come back more for more interviews.

  • HK

    Hadi K.

    4 3 2017 15:21

    0       17

    too much talking by the interviewer

  • nF

    nicholas F.

    3 3 2017 08:10

    4       1

    Great interview. Very thoughtful discussion from two very sharp investors. Thx Mike, great stuff

  • bf

    bart f.

    2 3 2017 17:04

    4       0

    Great material. Regarding correlation it is important to differentiate the shifts within an asset class and between asset classes: within equities it means more rv (financials vs utilities), within em more idiosyncratic (ability to pivot towards dt vision) and the passive investment boom might be a good contrarian indicator. The bond equity correlation can still stay +ve (higher yield, higher stocks) if reflation is the narrative offsetting withdrawal of liquidity. On the equity/rates correlation it is a direction trade cheapened by correlation and on the long dated rates option the pv would be mainly driven by the fwd/vol move (not spot). Good point regarding the mortgage convexity (higher rates higher duration). Thank you for the talk.

  • SP

    Steve P.

    2 3 2017 06:23

    12       0


    A lot of RV interviews are now zeroing in on possible trade ideas that viewers can explore for possible investment decisions. USA residents have the capability to access information and the means to follow through on trade ideas generated by the generally excellent information being provided. However, being a Souternh Hemisphere resident, we generally don't have access to the same trade platforms that US residents enjoy when talking derivative trades. Suggestion - could RV look to set up viewer access to a couple of associated brokerages that could provide services to subscribers interested in following up on ideas gleaned via the valuable information we glean from many of these extremely informative interviews.
    I'm sure it could be a welcome addition to the site for many non US viewers

  • AD

    Aaron D.

    1 3 2017 17:37

    11       1

    This video is now one of many favorites. Loved hearing how Ben structured trades in the credit and FX markets. I have a feeling his fund will do very well. Also, thanks for the cheat sheet Michael Green. Would love to see more of these types of interviews. Great work

  • JA

    Jason A.

    1 3 2017 17:22

    4       0

    Thanks for the cheat sheet guys much appreciated

  • DS

    Dustin S.

    1 3 2017 15:10

    20       1

    Pretty floored that the focus in the comment section is on irrelevant conversational ticks. The discussion on rates, particularly the long end of Sterling curve, should be very useful for both institutional and private investors. This is "adult swim" material and I can't think of any other place that you can get this type of insight at this price point. I am enjoying the path that real vision seems to be taking; greater focus on institutional investors and derivative topics.

  • BC

    Burton C.

    1 3 2017 11:57

    1       30

    Sorry to be critical, but yes the humms and yeps caused me to stop watching early on

  • JS

    John S.

    1 3 2017 11:19

    18       2

    Really enjoying Mike Green interviews. Keep them coming!

  • NB

    Neal B.

    1 3 2017 05:15

    3       0

    Michael thanks for responding no apology needed. Great interview thanks

  • SD

    Stephen D.

    1 3 2017 04:40

    11       9

    Michael and Ben are super smart guys but I thought in some ways this was a wasted opportunity for what could have been a remarkable interview. I'm an options guy and have been for 30 years and my universal experience is that most investors don't care about the details and are bewildered if they try. Both Michael and Ben are great communicators and could have gone somewhere more relevant to most RV views

  • JK

    Jeff K.

    1 3 2017 04:40

    2       6

    I really like MG, but what's with the cheesy advertising for Instinet?

  • LC

    Liliana C.

    1 3 2017 03:59

    16       0

    Wow! Michael Green is awesome! Didn't notice hmms. I noticed how MG stopped and explained in more simple way what the interviewee said. So grateful for that as I got a grasp of big picture. Zero clue how trades are structured though. Way over my head but very beneficial to understand what the tradeable paradigm shift could be.

  • SB

    Sam B.

    1 3 2017 01:30

    9       0

    Listening to these guys chat makes me feel like a moron, but looking forward to watching this another 5 times to wrap my head around those options strategies.

  • js

    jacob s.

    28 2 2017 23:52

    5       1

    Real Vision needs to created a course series for the CFA with Mark Meldrum.

  • HJ

    Harry J.

    28 2 2017 22:59

    5       0

    Thank you.
    Now I see why Grant would pay money to Chris and Mike talk.
    Thank you this was great.

  • JC

    James C.

    28 2 2017 22:04

    0       0

    I didn't notice the humming until it was pointed out!

  • JS

    Joe S.

    28 2 2017 20:17

    2       0

    Attempted to listen, but the video kept stopping and restarting.

  • MN

    Mark N.

    28 2 2017 19:26

    27       0

    Really happy Michael Green is doing more interviews, he seems to be one of the sharpest minds out there, which allows him to ask the right questions. I didn't notice the humms but now I can't un-hear it :-(

  • MG

    Michael G.

    28 2 2017 19:11

    77       0

    From Interviewer: Apologize for the "hummms"... first time I've done the interview format, never knew I did it until viewing the videos. Won't happen again and thanks for taking the time to watch. Hope you found it useful.

  • DM

    Daniel M.

    28 2 2017 18:05

    6       0

    RealVisionTV we need you guys to get your shit together and make RealVisionUniversity!

  • NB

    Neal B.

    28 2 2017 17:26

    1       15

    To the interviewer please stop mumbling huummm. I was watching another video you did. You doing great but the hummm are like every 1-2 minutes and doesn't add to the interview and as a listen i find i

  • SD

    Sebastien D.

    28 2 2017 15:50

    1       0

    Awesome but I'll have to go back and play in the sandbox. Mostly greek to me :)

  • BH

    Ben H.

    28 2 2017 15:49

    2       0

    But I will have too watch it again to get my head around it all..

  • M.

    Milton ..

    28 2 2017 15:05

    35       1

    Interview Cheat Sheet – Interviewer Michael Green has prepared a Cheat Sheet for this Master Class to define some of the complex options terminology

    Download Link: