Best Trade Ideas for Shorting Consumer Credit

From The Kobeissi Letter

"The U.S. Now Has:

1. Record $16.5 trillion in household debt
2. Record $11.9 trillion in mortgages
3. Record $1.6 trillion in auto loans
4. Record $986 billion in credit card debt

Total mortgage debt is now more than double the 2006 peak. Meanwhile, 36% of Americans have more credit card debt than savings with balances rising at the fastest pace since 1999. This is all while mortgage rates just hit 7.1% and credit card debt rates hit a record 24.9%."

Some trade ideas:

• Long-term puts on the credit card companies, e.g., Visa ($V)
• Long Financial Bear ETFs: $FAZ, $FINZ
• CDS on consumer debt securities

Any other ideas?

Regards,

PTR

 

Cmbx 6

 

Thank you.

 

You asked a question the right way. You provided useful information with your question and gave a thank you for your response. There are numerous posters on ET who can learn from you the proper way to post.

Lots of luck.

 

Thank you, now the question is how much pain to take while the position goes against me.

Regards,

PTR

 

Take a small loss before you have a large loss.