Alpha Exchange

Amidst these very uncertain times in the economy, geopolitics, and asset prices, it was excellent to welcome Alberto Gallo, founder and CIO of Andromeda Capital Management, back to the Alpha Exchange. Our conversation first considers the long arc of post-crisis monetary policy. Here, Alberto argues that extended quantitative easing, while stabilizing in the short run, carried structural side effects over time—capital misallocation, corporate consolidation, and widening inequality. He notes that central bank balance sheets remain large and that markets today send mixed signals: stability in rates and credit alongside strength in precious metals. We then turn to Andromeda’s approach to finding value in credit markets. Alberto frames bonds as embedded short-volatility instruments and describes a strategy that seeks asymmetric gain-to-loss profiles, liquidity, and convexity. A major focus is the rapid expansion of private credit—five-year lockups, high-single-digit returns achieved in benign conditions, sector