Listen: Bloomberg And Investment Manager discussed on Biz 1190 Overnight featuring Bloomberg Radio
"Volatility products coming to the corporate credit market. My Bloomberg colleague computer sale, he points out. There's a new exchange traded fund launching that will basically allow investors to short high yield debt something historically required a fairly sophisticated investment manager to actually do. Now. Investors are going to be able to do it with the click of a button specifically this ETF tracks A J P Morgan index that simulates the returns of selling an option strangle on a pair of credit default. Swap indices that basically reference the high yield market, and the basic idea here is that as long as implied volatility in junk bonds is higher than actual volatility in the junk bond market, then"