Recent News
| After a number of massive delays over the long weekend, JetBlue sent out an apology email, in addition to apology advertisements in East Coast newspapers, to everyone who has ever flown on their airline, with a link to a customer Bill of Rights. The "rights" take the form of vouchers for future travel on JetBlue. |
| European ETFs Based on Credit Derivatives in the Works |
| Written by David Neubert | |||
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It was just a matter of time, I suppose. I'm having trouble understanding the difference between these iTraxx ETF's issued by DeutscheBank and a portfolio of bonds.
Holding ETFs that own a portfolio of bonds, like the Corporate Bond Index based iShares (LQD - $106.61), just seems more direct and simple. An ETF that uses credit derivatives just seems like a way to make the whole process more complicated for the investor and a way to insert more fees for the bankers/brokers/managers. Here's a description of the Credit Derivative Based ETFs from IndexUniverse.com. Disclosure: I own a tiny amount of LQD in my IRA. I've traded or used most kinds of derivatives at some point in my life but I never used a credit derivative. This is sort of embarrassing given what a huge product they've become. Guess I'll have to stick to boring old bonds for my retirement savings.
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