ABOUT THE BNDD ETF:
Expertise in options and volatility markets
BNDD is managed by Quadratic Capital Management, an innovative asset management firm founded in 2013 by Nancy Davis. The firm’s expertise in the options and volatility markets allow us to construct portfolios that seek to mitigate the downside risk of the strategy while maintaining upside potential.
Attractive risk/reward profile
The BNDD ETF is a fixed income ETF that seeks to benefit from deflation caused by lower or negative long-term interest rates and the inversion or flattening of the U.S. interest rate curve. At the same time, the fund looks to provide investors with access to the OTC interest rate options market – a market largely not previously available to individual investors – to provide structured solutions that offer an attractive risk/reward profile.
Allows for innovative strategies
We believe the OTC Swap/Options market offers an attractive combination of inefficiency and liquidity which allows for the creation of innovative strategies previously only largely available to sophisticated institutional investors. The use of options can provide the opportunity for products to be constructed with known downside risk and strong upside return potential.
THE FOLLOWING INVESTORS MAY BE INTERESTED IN BNDD
Fixed Income Investors
BNDD is a fixed income product designed to benefit from a rally in Treasury bond prices and a flattening of the yield curve
BNDD may act as a market hedge since bond prices have historically increased during large equity sell-offs.