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2 red-hot investment products just blew up, erasing almost $3 billion in minutes





CME trader

  • Two exchange-traded products designed to return the inverse of the VIX exploded at the close of futures trading on Monday, seeing their combined value shrink from $3 billion to $150 million, according to estimates from Macro Risk Advisors.
  • The blow-up was the culmination of a long-running and wildly popular short volatility trade that was one of 2017’s most profitable.
  • The forced selling that results from position covering could drag US equity markets lower for a third straight day on Tuesday.
  • Credit Suisse, which is the biggest holder in one of the products, is down more than 6% in after-market trading.

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Source:: BusinessInsider.Com

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