BT Pension’s Molls Says Tail Risk Hedging Is More Important Than Ever

Boris Molls, head of markets, at BT Pension Scheme Management in London, said he is more concerned about systemic tail-risk than has been for a long time. This comes as rates and inflation “seem at crossroads,” he said. “Cross asset tails are hard to hedge. There are not many liquid instruments to do that. Being pragmatic, and cost-conscious, we are running systematic and in-house traded strategies that are based on equity options,” Molls said.