ETF Brings Credit Derivatives Loved by Hedge Funds to Masses
- Tabula lists fund tied to index of European default swaps
- Derivatives trading volumes rise amid liquidity-risk hedging
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After revolutionizing the way investors buy everything from equities to gold, ETFs are now threatening to disrupt the trillion-dollar market in credit derivatives.
A decade on from the financial crisis, a London-based provider of passive products is testing whether the speculative trading strategy has appeal beyond a rarefied group of institutional debt investors.