Get started

Corporatebonds

Trade of the decade - short the bubble $HYG $IGEvening traders, This is a difficult one, but one that will be immensely profitable for anyone that gets the timing right. This thing is going to blowup. Could be tomorrow, could be a couple years. This one will be a historic trade, might not even be a bad idea to scoop some 2021 OTM puts on the low. It's hard to bet against a sitting president, so timing will ultimately be the trade, because there is nowhere for this to go but down. Let me know your opinions in the comment section below, and as always smash that like and follow button!
AMEX:HYGShort
by ant187
2
What usually comes from retests?Altough most of the proes out there are used to wait a retest before entering a long position (I love retests too in specific markets, and when certain criteria are matched), I can tell you that TECHNICALLY retest are the worst thing that can happen during a breakout. It weakens momentum and confidence in speculator. You get closer to where most of the stops are set. It could escalate in a long sqeeze quickly. Not meaning I'm not short here. Good luck all
AMEX:HYG
by Anton_curatola
Leveraged Loans | Corporate Risk Premium Crisis?Many of you may not be familiar with leveraged loans and the ETFs that have become available to investors through funds over the last few years, but they are important to understand in order to have an edge over the rest of the markets these days - whether that's traditional equities, commodities, derivatives or crypto - as wealth preservation will be a big theme during 2019/2020. Investors have been driven into leveraged loans and related products sharply since the Financial Crisis as a result of record low interest rates in developed markets caused by experimental monetary policy; investors have been desperate for yield! And so we have seen very low risk premium spreads between "risky" junk paper and "risk free" treasury paper as a result of distortions in the marketplace. This spread is currently in the single digits, but during the Financial Crisis - when credit flow started to freeze - the spread skyrocketed into the 40 point range! Treasuries have only room to go lower in the event of a credit crisis and so one can imagine that risky corporate paper will be the victim of such a scenario as companies no longer get access to cheap credit. This will put huge pressure on corporate yields, resulting in defaults and deeply discounted paper. FYI: The Quantity Theory of Credit is my theoretical and empirical inclination. Anyway, keep an eye on leveraged loans and the ETF carrying them. Due to the way these ETFs are held by funds they also carry significant redemption risks, which can cause a run on the funds that issue them and cause funds to panic sell to meet redemption requests from investors. I'm sure there are a few strategies one could devise to take advantage of such a scenario ;)
AMEX:BKLN
by Trader6127