CDX: Good Way To Own High Yield Bonds
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The Simplify High Yield PLUS Credit Hedge ETF (CDX) is recommended as a buy due to its strategy of using a long-short portfolio to hedge credit risk, making high-yield bonds more attractive by mitigating downside risks. However, it does not protect against rising interest rates.
November 09, 2024 | 6:45 am
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The Simplify High Yield PLUS Credit Hedge ETF (CDX) is recommended as a buy due to its strategy of using a long-short portfolio to hedge credit risk, making high-yield bonds more attractive by mitigating downside risks. However, it does not protect against rising interest rates.
CDX is directly mentioned as a buy due to its effective strategy in hedging credit risk, which is crucial for investors in high-yield bonds. The lack of protection against rising interest rates is a noted risk, but the overall positive outlook on its credit hedging strategy supports a buy recommendation.
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IMPORTANCE 80
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