Harley Bassman Wants to Prove History Wrong With a New CDS Fund
- Proposed ETF will hold swap index options, Treasuries, TIPs
- Would become sole U.S.-listed CDS fund after others shuttered
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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.