Oil Turmoil Rattles $134 Billion Complex of Quant Trades

While commodities QIS have offered strong opportunities since the start of the conflict, particularly trend, value and backwardation, one of Wall Street’s most popular systematic trades is now slightly down in the current environment.

We were recently quoted in recent Bloomberg’s article highlighting the challenges facing commodity curve carry strategies recently:

“Commodity curve carry strategies have dropped 3% this year as of March 11 — a significant move for a trade that typically targets only a few percentage points annually.”

This raises a broader question: how have different QIS strategies performed since the onset of regional tensions?

Read the full article on Bloomberg.

Find out how 30+ defensive QIS strategies performed when macro and geopolitical risk converged in Use Case: When Macro and Geopolitical Risk Converge.

See how factors have performed since the conflict began in Market Update - Iran Tensions and Factor Performance.

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Related Insights

The rapid surge in oil prices unleashed by conflict in the Middle East is jolting one of the most popular systematic strategies touted by big banks on Wall Street.

Oil Turmoil Rattles $134 Billion Complex of Quant Trades

The key development has been the shift from static spreads to more systematic allocation frameworks across indices and maturities, supported by improved signal construction, normalization, and dynamic risk management.

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In the esoteric structured products realm, quant-powered trades are up +1.1% on average this year, according to data provider Premialab, which follows 7,000+ QIS.

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