Deutsche Bank Discovers Rare Good, Marketable Idea

A cheap and easy way to profit from the junk-bond collapse!
(Getty Images)

(Getty Images)

Deutsche Bank knows what it’s like waiting around for something to die, as it’s been bracing for that fatal piece of bratwurst to get stuck in its trachea for years now. But while it still barely clings to life, losing lots of weight and bumming everyone around it out, it thought it might put its last remaining piece of useful experience to good use, namely, being able to smell death on other things. In particular, the junk-bond rally has a whiff of mortality about it. So perhaps investors would like some more options for shorting said market, while simultaneously giving Deutsche a few extra ice chips to keep it going for a little longer. And really: It only costs a few!

The asset management arm of the German lender is starting three new exchange-traded funds focused on different parts of the junk-bond universe, according to Arne Noack, the firm’s head of exchange-traded product development for the U.S. They’re designed to help investors dial up or down their exposure to speculative-grade debt and complement Deutsche Asset Management’s existing high-yield bond funds, he said.

The funds will also have a feature that’s worked for Deutsche before: low fees…. “Having a low price tag always helps,” Noack said. “I’ve yet to encounter the investor who complains about having too cheap a price.

New Deutsche ETFs Let You Bet on Junk-Bond Market’s Death Throes [Bloomberg]