Managing Inflation Risk in the Post-COVID World  | Presented by  

December 16 
10:00 am - 11:15 am CST

Investment: 
Complimentary (members) / $120 per person (nonmembers)

Description: 
Aggressive monetary and fiscal policies to combat COVID19 have ushered the consensus view that high inflation is inevitable. Thinking about inflation through the lenses of the labor market has served well in the past, but the dynamics that are currently driving prices have materially changed. The risk for higher inflation is at its highest level in years, but M2 money supply and US dollar pressures remain relatively subdued. Details will be given as to why the current economic backdrop does not present an inflationary threat similar to that in the 1970s. A framework of inflation metrics will be outlined that allows practitioners to identify signs of sustainable price pressures on a cyclical and secular basis. A good understanding of the factors that drive inflation will help in formulating an appropriate risk management strategy at the balance-sheet and portfolio level.

Specific Session Objectives:

• Which inflation metrics are relevant for effectively evaluating portfolio risk for financial institutions?
• What are the different inflation metrics utilized by the Fed and how accurate or misleading are those measures?
• What are potential paths to higher inflation, but why inflation may struggle to rise materially above 2% in the years ahead?

Presenter: 
Dimitri Delis, Piper Sandler, is a Managing Director in Piper Sandler Financial Strategies (PSFS) in the Fixed Income Department. He is responsible for evaluating economic trends, analyzing current economic issues, developing econometric models and making economic presentations to clients.  

Prior to joining the group in 2005, Delis served as the cross-sector strategist for JP Morgan. Prior to the JP Morgan-Bank One merger, he was the derivatives strategist for Bank One. Dimitri’s experience includes market risk management for ABN AMRO where he was responsible for identifying and monitoring all market risk-taking activities for the derivatives and FX trading desks and bond modeling for Solomon Brothers’ proprietary portfolio tools. 

Dimitri Delis holds a Ph.D. in nuclear physics from the University of California at Berkeley and a bachelor’s degree in chemistry and mathematics from the University of Chicago. He completed his Master of Business Administration degree at Northwestern University’s Kellogg School of Management in 2006. He is a registered representative with the Financial Industry Regulatory Authority (FINRA).