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Harley Bassman Wants to Prove History Wrong With a New CDS Fund

The Simplify Credit Hedge ETF (CDX) is designed to pay off when turmoil hits credit markets. Katie Greifeld | Mar 12, 2021   (Bloomberg) Making cash in the world of credit insurance typically involves a special license and strategies that cost millions of dollars to run. Rates expert Harley Bassman wants to do it in a low-cost exchange-traded fund. Bassman, who created the MOVE Index to track Treasury volatility, is co-manager for the Simplify Credit Hedge ETF (ticker CDX), a proposed new fund that will invest up to 50% of its assets in credit-default swap index payer options, according to a filing Tuesday. Those are derivatives that allow investors to either hedge their position in a company’s bonds or to make a directional wager.

Junk Bonds Prove to Be a Shelter From the Rates Storm

Junk Bonds Prove to Be a Shelter From the Rates Storm
bloombergquint.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bloombergquint.com Daily Mail and Mail on Sunday newspapers.

Investment grade credit slips as duration risk rises

3 Min Read FILE PHOTO: U.S. one hundred dollar notes are seen in this picture illustration taken in Seoul February 7, 2011. REUTERS/Lee Jae-Won NEW YORK (Reuters) - A major exchange-traded fund tracking the U.S. investment-grade corporate bond market fell on Friday to its lowest since May 2020, after blowout employment data and comments from Federal Reserve Chair Jerome Powell on Thursday increased duration risk. BlackRock’s iShares iBoxx Investment Grade Corporate Bond ETF fell to a 10-month low of $129.27 and was last trading down 0.33% to $129.51. Since the start of the year, LQD has lost more than 6%. The improving economic data and increase in inflation expectations that have driven the U.S. benchmark 10-year Treasury yield to its highest in more than a year have also driven yields up - and prices down - on investment-grade debt. Investment-grade bonds tend to have longer durations than those in the junk-rated market. They are therefore more sensitive to inflation risks,

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