Among the muddied waters of exchange-traded products lie the highly leveraged exchange traded notes (ETNs). UWTI, the 3x leveraged long crude oil product offered by Credit Suisse AG is finally reaching its demise and is to be delisted December 9, 2016. UWTI will be sorely missed among “moms and millennials", who loved trading this vehicle.
UWTI is a probable casualty of the SEC's increased scrutiny of the shadowy world of leveraged investment vehicles and may be a move by Credite Suisse to forestall action which may have been taken by the regulator. The problem with investment vehicles like UWTI is that the high cost of front-month futures contracts destroys the underlying value of the product over time, which makes this type of vehicle only appropriate for VERY short holding periods. Plenty of alternative leveraged notes still exist for gamblers - erm, traders - to play around with.
https://www.prnewswire.com/news-releases/credit-suisse-ag-announces-its-intent-to-delist-and-suspend-further-issuances-of-its-dwti-and-uwti-etns-300364595.html
UWTI is a probable casualty of the SEC's increased scrutiny of the shadowy world of leveraged investment vehicles and may be a move by Credite Suisse to forestall action which may have been taken by the regulator. The problem with investment vehicles like UWTI is that the high cost of front-month futures contracts destroys the underlying value of the product over time, which makes this type of vehicle only appropriate for VERY short holding periods. Plenty of alternative leveraged notes still exist for gamblers - erm, traders - to play around with.
https://www.prnewswire.com/news-releases/credit-suisse-ag-announces-its-intent-to-delist-and-suspend-further-issuances-of-its-dwti-and-uwti-etns-300364595.html
