Index Provider Alerian Buys ETF Trends, ETF Database
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Harley Bassman, Simplify Go Back to Drawing Board With CDS ETF
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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.