Chapter 9: Global Macro and Alternative Risk Premia

In this section

• Global Macro Strategies in Alternative Investments
  Global Macro Strategies in Alternative Investments (CFA Level 1): Foundational Perspective on Global Macro, Discretionary vs Systematic Approaches, and Top-Down vs Bottom-Up in Macro Land. Key definitions, formulas, and exam tips.
• Role of Alternative Risk Premia in Portfolio Construction
  Role of Alternative Risk Premia in Portfolio Construction (CFA Level 1): Fundamentals of Alternative Risk Premia, Alpha vs. ARP: The Difference in a Nutshell, and Integration of ARP into a Broader Portfolio. Key definitions, formulas, and exam tips.
• Quantitative Models and Systematic Tilt Exposures
  Quantitative Models and Systematic Tilt Exposures (CFA Level 1): Role of Quantitative Models in Global Macro, Assessing Large Data Sets and Signal Extraction, and Systematic Tilt Exposures. Key definitions, formulas, and exam tips.
• Strategy Implementation and Manager Selection
  Strategy Implementation and Manager Selection (CFA Level 1): Hallmarks of Successful Global Macro and Risk Premia, Implementation Across Different Global Markets, and Due Diligence Framework. Key definitions, formulas, and exam tips.
• Discretionary vs. Systematic Macro Approaches
  Discretionary vs. Systematic Macro Approaches (CFA Level 1): Defining Discretionary Macro, Strengths of Discretionary Macro, and Potential Weaknesses of Discretionary Macro. Key definitions, formulas, and exam tips.
• Regional vs. Global Macro Opportunities
  Regional vs. Global Macro Opportunities (CFA Level 1): Regional Macro Funds: Getting Up Close and Personal, Local Expertise, and Political Risk and Regulatory Hurdles. Key definitions, formulas, and exam tips.
• Tail Hedge Strategies and Crisis Alpha
  Tail Hedge Strategies and Crisis Alpha (CFA Level 1): Understanding Tail Hedge Strategies, Basics of Tail Risk, and Instruments for Tail Hedging. Key definitions, formulas, and exam tips.
• Combining Risk Premia in a Balanced Portfolio
  Combining Risk Premia in a Balanced Portfolio (CFA Level 1): Understanding Risk Premia and Why They Matter, Building a Balanced Multi-Factor Portfolio, and Role of Correlation and Diversification. Key definitions, formulas, and exam tips.
• Inflation-Linked Approaches and Currency Regimes
  Inflation-Linked Approaches and Currency Regimes (CFA Level 1): Linking Inflation Risk and Global Macro Strategies, Personal Reflection, and TIPS, Break-Even Inflation, and Other Inflation-Linked Bonds. Key definitions, formulas, and exam tips.
• Geopolitical Scenario Planning
  Geopolitical Scenario Planning (CFA Level 1): Core Concepts in Geopolitical Scenario Planning, Scenario Planning, and Stress Testing. Key definitions, formulas, and exam tips.
• Policy Shifts and Regulatory Frameworks
  Policy Shifts and Regulatory Frameworks (CFA Level 1): Regulations and Market Inefficiencies, Global Entities Shaping Capital Markets, and Evolution of Macro Strategies Under Regulatory Changes. Key definitions, formulas, and exam tips.
• Correlation Dynamics in Multi-Asset Portfolios
  Correlation Dynamics in Multi-Asset Portfolios (CFA Level 1): Why Correlation Dynamics Matter, Advanced Methods to Measure Correlation, and Copula Models. Key definitions, formulas, and exam tips.
• Tactical vs. Strategic Risk Premia Allocation
  Tactical vs. Strategic Risk Premia Allocation (CFA Level 1): Strategic vs. Tactical Conundrum, Key Differences Between Strategic and Tactical Allocation, and Role of Factor Persistence. Key definitions, formulas, and exam tips.
• Using Derivatives for Macro Hedging
  Using Derivatives for Macro Hedging (CFA Level 1): Key Derivatives for Macro Hedging, Hedging with Options and Collars, and Hedging with Futures and Forwards. Key definitions, formulas, and exam tips.
• Monitoring Macro Indicators and Surprise Indexes
  Monitoring Macro Indicators and Surprise Indexes (CFA Level 1): Core Macro Indicators and Their Market Impact, Why Monitoring These Indicators Matters, and Surprise Indexes Explained. Key definitions, formulas, and exam tips.
• Behavioral Aspects in Macro Trading Decisions
  Behavioral Aspects in Macro Trading Decisions (CFA Level 1): Common Behavioral Biases in Macro Trading, Challenge of Anchoring in Discretionary Macro Trading, and Groupthink and Institutional Pressures. Key definitions, formulas, and exam tips.