Boaz Weinstein, the founder of Saba Capital and former co-head of credit trading at Deutsche Bank, revealed his big trade idea Thursday at the Harbor Investment Conference.The derivatives trader and legendary hedge fund manager said his trade idea is to buy Investment Grade Series 9 10-Year Index CDS (maturing on 12/20/2017).
“They are very attractive,” he explained adding that they can be bought at a “very good discount.”
Weinstein said he bought the CDS a couple days ago.
The Markit CDX North America Investment Grade Series 9 10-Year Index is comprised of 125 equally weighted credit default swaps on investment grade entities distributed in six sub-indices – high volatility; consumer; energy; financial; industrial; and tech, media and telecom, according to Bloomberg data.
This index is used as a hedge, or insurance, against credit events.
The Harbor Investment Conference, which was hosted by hedge fund titan and philanthropist Bill Ackman, brought together some of the industry’s top investors to share ideas for trades, while also raising money for the Boys & Girls Harbor.
All trade ideas were embargoed until after 4 p.m. on Friday.