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Keep Calm, Hold Cash, Watch The ISDA Basis And Buy This Crazy 5X Leveraged Short BTP Product
Who had fun on Tuesday?
Presumably anyone holding the "Boost BTP 10Y 5x Short Daily ETP", that's who.
"Well what the actual fuck is that?", you might fairly ask.
As it turns out, when it comes to soaring Italian bond yields, "there's an ETP for that" and the vehicle mentioned above is that ETP. It was up some 25% at one point on Tuesday and as you can see, it's had a nice run of late:
And while in retrospect that might have been a great lottery ticket to have in one's portfolio, hindsight
If you can spare some cash, I would venture vacations to Italy are about to become extremely cheap.
That’s some funny stuff!
Who does your graphics? It’s hard to imagine you can be this fountain of words, engaging syntax AND do the graphics too? If so, man, my hat is removed.
In my parallel universe, the very existence of a 5x leveraged BTP short ETP sounds like the flapping of a black swan’s wings inside a house of cards.
This is an article by Jim Puplava.
https://www.financialsense.com/fs-staff/liquidity-crisis-looming?utm_source=newsletter&utm_medium=email&utm_campaign=weekly
Adds emphasis to what you’ve been saying for a while now. Liquidity bottleneck.
Dangerous situation for most and, maybe, an opportunity for some.
Thanks for your always current heads-up.