Why Credit Derivatives Are Losing Some of Their Mojo

The video discusses the current challenges with credit derivatives, particularly their mismatch with investor portfolios, which became evident during the 2018 financial crisis. Investors are seeking alternatives like ETFs and total return swaps. The popularity of hedging has surged, with both investment-grade and high-yield credit performing well. Trade wars have heightened risk awareness, leading to increased interest in ETFs due to their liquidity and ease of trading.

What factors contributed to the increased attention on ETFs in the context of credit derivatives?

How do high yield bond ETFs differ from traditional credit derivatives in terms of trading?