What's the Big Idea? Short Volatility Products Come to Credit

The video discusses a new ETF that allows investors to short high yield debt, a process previously requiring sophisticated management. This ETF tracks a JP Morgan index simulating returns from selling an option strangle on credit default swap indices. The strategy profits when implied volatility in junk bonds exceeds actual volatility. However, risks include potential losses during market sell-offs, reminiscent of past volatility product failures. The ETF, under ticker T-BALL, is costly, limiting access for many retail investors.

What historical event is referenced in relation to the risks of the ETF?

What is the expected cost of a single share of the ETF?