Barclays Launches Six ETNs for Custom Yield Curve Strategies
August 18, 2010 at 00:42 AM EDT
Barclays launched six new ETNs last Tuesday (8/10/10) that seek to track a bond’s “yield change” instead of the more traditional “price change” targeted by other bond funds. These ETNs allow investors to create more customized yield curve strategies than the prepackaged iPath yield curve solutions: iPath US Treasury Steepener ETN (STPP) and iPath US Treasury Flattener ETN (FLAT), which were part of the same announcement. The six new ETNs are unsecured debt obligations of Barclays Bank and are based on bullish and bearish versions of three indexes: Barclays Capital 2Y US Treasury Futures Targeted Exposure Index, Barclays Capital 10Y US Treasury Futures Targeted Exposure Index, and Barclays Capital Long Bond Futures Targeted Exposure Index. The ETNs carry an investor fee (expense ratio) of 0.75% plus a one-cent hit to…