A Top-Performing ETF for Rising Rates

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About This Episode

Mortgage-backed securities (MBS) have taken a hit over the last several weeks with the news of the Fed’s plans to shrink its balance sheet. Today's guest, Dean Smith of FolioBeyond, will discuss why the combination of the rise in Treasury yields and the widening of MBS spreads is continuing to increase the valuations of certain types of mortgage-backed securities. With the expectation that the pace of rate hikes will soon be more aggressive, Dean will explain how the actively managed rising rates ETF, RISR, will benefit and generate alpha. The FolioBeyond Rising Rates ETF (RISR) is up 26.55% YTD (as of 4/13/2022) and is ranked #1 by Morningstar among non-traditional bond strategies.

About Our Guest

Dean Smith has more than 25 years of experience in all aspects of structured products with roles as an investment banker, trader, and hedge fund portfolio manager. He has an extensive background in quantitative finance, capital markets, statistical modeling, machine learning, trading and risk management, structured securities, derivatives, credit, econometrics, and algorithmic investment strategies. He has specific sector expertise in fixed income, structured products, and credit derivatives. Dean’s areas of research focus include deep learning, natural language processing, reinforcement learning, and algorithmic investing.

Show Notes

Here are links to learn more about FolioBeyond and about RISR. Here is a link to Dean’s most recent commentary, FolioBeyond Fixed Income Commentary for December 2021.