ETF Backed by Swaps Offered for Investors Leery of Junk
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An exchange-traded fund that allows individual investors to short junk bonds with credit-default swaps is set to debut after the market recorded its first monthly loss of 2014.
ProShares is set to list a new ETF as soon as tomorrow that provides a way for investors to take a bearish position on high-yield debt issuers, according to Chief Executive Officer Michael Sapir. The ProShares CDS Short North American High Yield Credit ETF, which will be listed on BATS Exchange Inc. under the ticker WYDE, will invest at least 80 percent of its assets in index-based credit-default swaps, according to a July 23 filing.