So, what got this going in my head was a desire to hedge against deteriorating credit quality overall, but specifically on consumer credit. A guy on CNBC said that 90-day credit card delinquency went from 5% to 11% in the past year. I can see no evidence of this, but I do see it's gone from 8% to 11%. In any case, I'd like to find a way to profit (in part by way of hedging or protecting my existing risks) on further deterioration.
I considered simply buying puts on Capital One, or other large credit card issuers, but I'd prefer something more elegant, narrow and incisive. I haven't yet researched other tracking instruments or ETFs that could more efficiently do the job. Any ideas?
Also, since increased tariffs (boo!) seem to be in the cards no matter who's elected, I'd like to hedge away some of this risk as well (either in favor of domestic providers or shorting international ones). Once again, I'd like something specific to this threat, and not broad-based. I don't know of any, but am very interested in ideas.
I considered simply buying puts on Capital One, or other large credit card issuers, but I'd prefer something more elegant, narrow and incisive. I haven't yet researched other tracking instruments or ETFs that could more efficiently do the job. Any ideas?
Also, since increased tariffs (boo!) seem to be in the cards no matter who's elected, I'd like to hedge away some of this risk as well (either in favor of domestic providers or shorting international ones). Once again, I'd like something specific to this threat, and not broad-based. I don't know of any, but am very interested in ideas.