Markets Underpricing Debt Deal, RBC's Wu Silverman Says

The video discusses client communication regarding the debt ceiling, likening the situation to a 'paddling duck environment' and a 'third trimester of pregnancy.' It explores trade strategies, emphasizing low-cost convexity grabs and the relative expense of downside versus upside. The speaker believes the upside is underpriced, referencing historical market data from 2011 to highlight current fears and demand for downside protection.

What is the significance of the year 2011 in the context of the discussion?

Why is there a demand for downside tail relative to upside tail?