Before SVB Collapse, Nancy Davis Warned of “Short Fixed-Income Volatility Exposure” on CNBC
On January 31, 2023, Nancy Davis joined Scott Wapner from CNBC's 'Halftime Report' to warn that while the markets seemed calm, investors were exposed to "short fixed income volatility" lurking inside many portfolios via mortgage-backed securities.
Exactly 30 trading days later, Silicon Valley Bank (SVB) collapsed due to similar risks she highlighted.
On March 22, 2023, Nancy joined Morgan Brennan from CNBC's 'Closing Bell: Overtime' again, where she stated that while things seemed to have normalized after SVB's collapse, there was still room for credit spreads to widen and more defaults to come in. She believes there is a tremendous opportunity for investors to add inflation-linked securities to their portfolios. Her fund, the Quadratic Interest Rate Volatility and Inflation Hedge ETF (Ticker: IVOL), holds TIPS and interest rate options that provide exposure to a broader measure of inflation than just CPI.
For IVOL standard performance, top 10 holdings, risks, and other fund information, please click here.
The video contains Nancy Davis' opinion regarding the market. It should not be regarded as investment advice or recommendation of specific securities.