Posts belonging to Category Exchange Traded Notes (ETNs)



Exchange Traded Notes Can Lead to Big Losses

 

While the popularity of exchange traded notes (“ETNS”) has surged, ETNs can be extremely volatile, and investors run the risk of losing their entire investment. ETNs reportedly hold $17.4 billion in assets, up from under $5 billion five years ago.

Chasing Higher Yields Involves Taking Greater Risk

 

The prospect of several more years of extremely low interest rates is causing people who depend on interest income to accept Wall Street’s recommendations to purchase relatively illiquid and opaque alternative investments like structured products, non-traded REITs, hedge funds and variable annuities. (“Itchy Investors Ramp Up the Risk,” Wall Street Journal). Regulators worry that the […]

Credit Suisse Exchange Traded Notes (ETNs) Clean Investors’ Clocks

 

Credit Suisse’s VIX (volatility)-linked exchange traded note? named “VelocityShares Daily 2X VIX Short-Term ETN” ? plummeted 30 percent on March 23 after Credit Suisse announced it would resume issuing new shares. “This is a wake-up call,” a Morningstar analyst was quoted as saying, adding: “People don’t take seriously the options that issuers have” that can […]