David Dredge, Founder and CIO, Convex Strategies

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 price...