Financial innovation, when will it stop!?We’ve seen two interesting, new financial products lately.
Felix Salmon points to new ETFs that will — get ready for this — replicate taking a simultaneous long AND short position in two other ETFs. Oh, and it’s at 4:1 leverage. The idea is based on this notion that several leveraged ETFs don’t do that well and decay over time, so some folks have bet short on both, on the idea that over time they’ll both go down.
Meanwhile, ZeroHedge points to retail CDS, products that basically let anyone bet — in a binary, either/or manner — whether a company will have a default or not.
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