Story time.
Been hearing from Private Credit people about how their structured loans are levered 13x. Feel sorry for the person providing the equity layer.
Old heads. Excellent work AC. You had me at Merton model.
Another expression for shorting credit spreads is long the SJB etf for anyone who is interested. I'm long. Cheers.
Great post, and a side request given your first paragraph: please remember us non-Twitter-residing subscribers too :) I don’t spend much time there and would hate to miss some important position update because of it.
isn't shorting IBHY futures the cleanest way? no borrow
https://cdn.cboe.com/resources/futures/ibig-ibhy-fact-sheet.pdf
and you are shorting HYG unhedged? no fear of rates?
Hello Alexander,
Kevin Muir wrote extensively on this matter. Here is one of his latest - https://themacrotourist.substack.com/p/shorting-corporate-credit?r=35sz7&utm_campaign=post&utm_medium=web
In that regard, I am curious what your views are on outright shorting the iBoxx High-Yield Index futures?
Also, Apollo and Allianz are missing. I think they are heavily exposed, too.
Have a great day
Great read! Could you ellaborate more on how you see the fed being boxed affecting the big picture macro?
Been hearing from Private Credit people about how their structured loans are levered 13x. Feel sorry for the person providing the equity layer.
Old heads. Excellent work AC. You had me at Merton model.
Another expression for shorting credit spreads is long the SJB etf for anyone who is interested. I'm long. Cheers.
Great post, and a side request given your first paragraph: please remember us non-Twitter-residing subscribers too :) I don’t spend much time there and would hate to miss some important position update because of it.
isn't shorting IBHY futures the cleanest way? no borrow
https://cdn.cboe.com/resources/futures/ibig-ibhy-fact-sheet.pdf
and you are shorting HYG unhedged? no fear of rates?
Hello Alexander,
Kevin Muir wrote extensively on this matter. Here is one of his latest - https://themacrotourist.substack.com/p/shorting-corporate-credit?r=35sz7&utm_campaign=post&utm_medium=web
In that regard, I am curious what your views are on outright shorting the iBoxx High-Yield Index futures?
Also, Apollo and Allianz are missing. I think they are heavily exposed, too.
Have a great day
Great read! Could you ellaborate more on how you see the fed being boxed affecting the big picture macro?