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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 416.72+1.2%Dec 26 4:00 PM EST

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To: TobagoJack who wrote (19930)7/1/2007 4:50:57 PM
From: Riskmgmt  Read Replies (2) of 218721
 
TJ:
If I may tear you away your teasing CB for a minute and get back to finances:}

Are you familiar with Itraxx?

www.eurexchange.com itraxx

It has been recommended to me as hedge against the sub prime fall out. This product benefits from a widening of credit default spreads and so the worst it gets, the greater the return, up to a 15% cap.

As, it was explained to me, the principal is 100% protected, so the risk, is in the return, which could be 0 to 15%.

Frankly, my understanding of these things are limited, hence my calling on brighter fellows such as yourself. What is the downside? It sounds like an excellent way to pick up 15% return.

regards,

Ray
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