Simplify High Yield ETF (CDX)
ARCA ARCA Primary 
Navigating Private Credit: Simplify's Christopher Getter on PCR
VettaFi recently sat down with Christopher Getter of Simplify Asset Management to discuss the role of private credit in portfolios and the unique structure of the Simplify Private Credit Strategy ETF (PCR), which is currently yielding 12.27%.
CDX: A High-Yield Fund Built For The Crunch
The Simplify High Yield ETF offers a defensive approach to high-yield investing, using proprietary hedges to dampen credit-driven drawdowns. CDX employs swaps, credit default swaps, and options to manage risk, aiming to limit losses during market stress while accepting some upside lag in rallies. Recent market events have shown CDX's hedges can reduce losses compared to traditional high-yield ETFs, though it may underperform in strong credit markets.
Not The Usual High Yield: The CDX Case
Simplify High Yield ETF offers an alternative HY strategy, mixing synthetic exposure with a quality/junk hedge to maximize income and manage credit risk. An ambitious claim, yet so far it has delivered alpha versus classic HY funds. But if every return comes with risk, where is it here? This comes from opportunistic management using synthetic instruments and alternative strategies, which add more uncertainty than passive ETFs.
CDX: Good Idea, Bad Execution
CDX ETF has outperformed peers and delivered strong returns, validating its unique quality/junk equity hedge strategy for high-yield bond exposure. Recent volatility in April highlighted the risks of basis mismatch between credit and equity hedges, but the fund ultimately recovered well. However, I am concerned by signs of 'mandate creep,' as Simplify's portfolio managers have taken positions outside the fund's stated strategy, increasing operational risk.
ETF Edge: Moody's downgrade, ETFs with hedge fund strategies and product overload
Paisley Nardini, Simplify Asset Management managing director and portfolio manager, and Dave Nadig, financial futurist, join Dom Chu on “ETF Edge” to talk about new investor optimism, ETFs adopting a hedge fund- like strategy and what these funds can do for investors now.
Cloud DX Completes First Stage of Restructuring Process
KITCHENER, ON / ACCESSWIRE / December 16, 2024 / Cloud DX Inc. ("Cloud DX") (TSXV:CDX)(OTCQB:CDXFF) today reports the sale of its wholly owned subsidiary Cloud Diagnostics Canada ULC (the "Company") to 1493907 B.C. Ltd (the "Purchaser").
CDX: High-Yield Bond ETF, Credit Hedged, Ineffective Strategy
A reader asked for my thoughts on CDX. CDX focuses on high-yield corporate bonds with a credit hedge meant to protect investor capital when credit spreads widen. CDX's credit hedges, including S&P 500 puts and credit default options, have been ineffective during past downturns and credit events.
CDX: High Yield Fund With A Wide Mandate (Rating Downgrade)
CDX has shifted from a high yield ETF with an embedded hedge to a multi-asset fund. The fund's new structure introduces higher risk, making it unsuitable as a building block for high yield portfolios. Current high yield credit spreads are at decade lows, making the macro environment unfavorable for high yield investments.
CDX: Good Way To Own High Yield Bonds
Simplify High Yield PLUS Credit Hedge ETF uses a long-short portfolio of high-quality vs. low-quality stocks to hedge credit risk, offering a positive carry credit hedge. While CDX offers protection against credit risk, it does not hedge against rising interest rates, posing a risk during periods of increasing rates. I rate CDX a buy for its potential to make high-yield bonds more palatable by mitigating downside risks from a negative credit cycle.
Hemogenyx Pharmaceuticals hails potential of new CDX antibody
Hemogenyx Pharmaceuticals PLC (LSE:HEMO, OTC:HOPHF) has announced the development of a new version of its bi-specific CDX antibody aimed at treating relapsed or refractory acute myeloid leukaemia (AML), which also shows potential for use in bone marrow transplant conditioning. The improved CDX, developed using Lonza's bYlok bispecific pairing technology, has demonstrated significantly enhanced efficacy in laboratory testing, with further animal studies currently in progress.
Credit Hedging Done Right: CDX Outperforms With Defense
The credit risk in high yield bonds tends to have more volatility and credit spreads can widen swiftly during periods of market stress, wiping out income quickly. CDX deploys credit hedging techniques to mitigate credit risk. CDX has the ability to deploy credit hedges with a direct tie to credit markets, like CDS, CDX and CDX options.
CDX: If You Want To Buy High Yield Here, Buy It Hedged
CDX outperformed competitors HYG and JNK in the past year from a total return perspective, and with a better drawdown profile. CDX utilizes put spreads on the S&P 500 to hedge downside moves, providing insurance against market losses. The fund offers a lower drawdown in a market sell-off due to its embedded hedge profile and put spreads, making it a smart choice for investors.
