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Brad Kenagy

 
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  • A New ETF That Is Like The VIX For High Yield Bonds [View article]
    I agree the names are confusing.
    Aug 14 11:40 PM | Likes Like |Link to Comment
  • A New ETF That Is Like The VIX For High Yield Bonds [View article]
    Yes you are correct on your assessment of when to buy TYTE, and WYDE. WYDE would pay a dividend if there is defaults.
    Aug 14 11:39 PM | Likes Like |Link to Comment
  • Market At New Highs, Go Bear Hunting: Sears Holdings [View article]
    I havent been part of the conversation but I'm going to add my 2 cents. I looked at Buffets holdings and out of 45, Liberty Global, and Lee Enterprises were the only companies that were not profitable. Therefore based on those odds I find it extremely unlikely Buffett would take a position since the data shows he overwhelming favors profitable businesses.
    Aug 14 02:49 PM | Likes Like |Link to Comment
  • A New ETF That Is Like The VIX For High Yield Bonds [View article]
    You have it backwards, WYDE is "long" default risk.
    Aug 14 09:28 AM | Likes Like |Link to Comment
  • A New ETF That Is Like The VIX For High Yield Bonds [View article]
    Thank you for the comment. I agree with you on everything that you said.
    Aug 13 04:25 PM | Likes Like |Link to Comment
  • Market At New Highs, Go Bear Hunting: Sears Holdings [View article]
    Thank you for cleaning it up. I will have no disgusting language in the comments.
    Aug 13 02:46 PM | Likes Like |Link to Comment
  • A New ETF That Is Like The VIX For High Yield Bonds [View article]
    So when ProShares says the above that a negative exposure value is negative that means the fund is short, and when ProShares says that the fund will be paying a dividend I believe that as well.
    Aug 13 10:25 AM | Likes Like |Link to Comment
  • A New ETF That Is Like The VIX For High Yield Bonds [View article]
    Here is Proof for you guys: How about going to the holdings page for WYDE and TYTE. When you do that you can see the following:

    TYTE:

    Series 22 Exposure value: 3,259,184.56
    Series 21 Exposure value: 645,154.62

    WYDE:

    Series 22 Exposure value: (4,968,920.72)
    Series 21 Exposure value: (903,216.47)

    Also, there is a little * next to the term "Exposure value" and the meaning is right below the holdings:

    "For swap agreements, a positive amount represents "long" exposure and a negative amount represents "short" exposure."

    So therefore, WYDE has short exposure!! according to the ProShares website so I will trust them when they say that WYDE which its negative exposure value has short exposure!

    This is my last message because when I get disparaging like comments from @user5179521 I'm not going to respond. His comment said "It is dangerous to advise people when you don't know anything !!"

    I am not advising people I clearly stated that investors should make up their own mind. Also, please read my disclaimer below that I have in my article, I write with doing research first to the best of knowledge.

    "Since WYDE just started trading last week, it has very thin volume and minimal assets, therefore I would WAIT AND SEE if trading volumes pick up, and see what the first quarterly dividend payment will be to assess the yield of the fund."

    Disclaimer:

    "The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities.

    The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective. The information provided is not intended to be a complete analysis of every material fact respecting any strategy. The examples presented do not take into consideration commissions, tax implications or other transactions costs, which may significantly affect the economic consequences of a given strategy.

    This material represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any security in particular."
    Aug 13 10:21 AM | Likes Like |Link to Comment
  • A New ETF That Is Like The VIX For High Yield Bonds [View article]
    I looked through the prospectus for WYDE and found no mention of investors paying the CDS Spread. Expense Ratio is 0.50%. If you could point that out in the prospectus that would be great, because I looked through it and couldn't find anything like that.

    http://bit.ly/1upX6Fn
    Aug 12 10:51 PM | Likes Like |Link to Comment
  • A New ETF That Is Like The VIX For High Yield Bonds [View article]
    You have it backwards, WYDE will profit when defaults rise and spreads are Increasing. Widening spread=higher default risk, hence cleverly why the fund is name WYDE for "Wide Spread".

    In the fact sheet for WYDE it says WYDE "Can be used by investors to hedge against the credit risk inherent in high yield bonds."

    As I stated before WYDE is "Long" Credit Risk/aka Default risk.

    I agree the name is kind of confusing, they are SHORT a CDS, but the effect of that is "long" default risk.

    Maybe a re-branding of the Fund like the: ProShares Long Credit Risk ETF
    Aug 12 10:32 PM | Likes Like |Link to Comment
  • A New ETF That Is Like The VIX For High Yield Bonds [View article]
    I'm sorry but I dont get how the name is confusing, name clearly says short in it. I like to think of it this simple way, the fund is essentially "long" default risk. So when defaults increase or spreads widen WYDE will profit.

    ProShares CDS Short North American High Yield Credit ETF
    Aug 12 09:14 PM | Likes Like |Link to Comment
  • A New ETF That Is Like The VIX For High Yield Bonds [View article]
    Thank you for the comment. WYDE is not buying credit default swaps, they are selling them since it is the short version. The other new ProShares fund TYTE is buying the CDS.
    Aug 12 08:26 PM | 1 Like Like |Link to Comment
  • A New ETF That Is Like The VIX For High Yield Bonds [View article]
    I guess we will have to agree to disagree on this issue. As far as your unicorn & marshmallow comment goes:

    An example:

    -If I purchase Shares of HYG, I receive monthly dividends correct??
    -If I purchase WYDE, WYDE only goes up when spreads increase, OR defaults increase. It DOES NOT cost me any of the dividends I received from HYG, and WYDE itself will pay a dividend, most likely a small one but still a dividend.

    So I get exposure to high yield bonds through my position in HYG, income from HYG Dividends, and a hedge against rising spreads & defaults with WYDE with a dividend kicker as well.
    Aug 12 07:37 PM | Likes Like |Link to Comment
  • A New ETF That Is Like The VIX For High Yield Bonds [View article]
    You misunderstand me, and I did not make an error, if I wanted to compare the TOTAL RETURN of HYG to SJB I would have done so! I was using the example of SJB to show that how current investors might hedge if you are bearish on high yield bonds. That is the only point I was making!! that existing short funds have a decay because of compounding of daily returns, where WYDE does not. This article is about WYDE, not SJB.
    Aug 12 05:40 PM | Likes Like |Link to Comment
  • A New ETF That Is Like The VIX For High Yield Bonds [View article]
    That you for the comment, but you are mistaken, right on the ProShares page for WYDE it shows:

    Distributions: Quarterly

    http://bit.ly/1sP7Rxc
    Aug 12 05:36 PM | Likes Like |Link to Comment
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