Remember "The Big Short"? We all remember that at the end of the thing the bankers who made a killing on mortgages for multiple years got bailed out anyways? The keypoint is Burry didn't beat the bankers. They both won, while Main street lost. We all know that this is gonna happen again, but we keep trying to time the thing to come out ahead ourselves, only that's basically impossible if you try to trade actively. What if there was a way to make money betting on corruption? What if we could become bearbulls– betting on a bailout?
CLOZ is an ETF based around CLOs (basically CDOs for corporate debt instead of mortgages). CLOZ boasts a dividend yield of approximately 8.74%, translating to an annual payout of $2.32 per share, meaning instead of being costly it's lucrative to hold on to. It plays into the thesis that there will be a flight to safe bonds when equities start to shit the bed, whilst also being protected from counterparty risk since there's always a bailout. You really have to wonder if there's any other place to exploit so telegraphically? Unless there's a meltdown of the American economy that's more like '29 than '08, most of the debts are just going to be extended as they have been. Even Donnie doesn't have the balls to pop the corporate debt bubble as it is.
And the yield will only go up: we're already hitting the debt maturity wall, so it's reasonable to forecast a dividend increase. At its best, it's returned $0.26 in a month or around 14% annually! So why not earn like a banker?
Dividend history: [https://stockanalysis.com/etf/cloz/dividend/](https://stockanalysis.com/etf/cloz/dividend/)
