Data as of 30 September 2019. For illustrative purposes only.
About the Tabula iTraxx IG Bond UCITS ETF:
The Tabula iTraxx IG Bond UCITS ETF aims to track the innovative iBoxx iTraxx Europe Bond Index, developed by Tabula and IHS Markit. This new index combines the robust construction of an iBoxx bond index with the geographic and sector exposure of iTraxx Europe, a highly liquid credit benchmark traded widely via credit default swaps. The resulting index delivers liquid and efficient exposure to investment grade European corporate bonds.
Whitepaper: Trading the CDS-bond basis
The CDS-bond basis is a credit factor that allows investors to capture yield by targeting the difference between the trading levels of CDS and bonds of the same issuing entity without being outright long the underlying credit risk. Historically it has been difficult to capture this factor on indices due to the mismatch in exposure of the available instruments. It is important to remember that anyone with a credit portfolio, whether holding cash bonds or CDS, is likely to be long or short CDS-bond basis.