3 ms·
Correct, oAI is short rates vol.
by mise_en_place 11mo ago
Correct, oAI is short rates vol.
- JumpCrisscross 11mo ago> Correct, oAI is short rates vol Why vol? They're just short rates, which is a silly way to say leveraged. If rates become volatile but halve, OpenAI does fine. If rates stabilise at 10%, OpenAI fails. There is no "duration hedging," which for OpenAI would involve buying duration, i.e. bets that profit when rates go up, going on.