All financial services businesses are threatened to a greater or lesser extent by the phenomenon known as tail risk - that is, the risk of an unlikely event that can create catastrophic results. A ...

The California Public Employees’ Retirement System has argued that it ended its tail-hedge risk-mitigation program in favor of a traditional diversification strategy because of the high costs of tail ...

Hedging strategies can pay off big when markets crash — but that eventual pay-off is “more than offset by their cost,” according to MSCI Research. Tail-risk hedging strategies are investments designed ...