Bubble + Leverage = Double Bubble

By Paul Kedrosky · July 21, 2011 · ·

Just what we needed: A leveraged bubble.

UBS, the Swiss bank famous for private-client wealth management, launched a pair of exchange-traded notes today focused on Internet-related initial public offerings—one with single exposure and the other serving up double exposure—that could give investors a way to play the latest Internet IPO craze.

The ETRACS Internet IPO ETN (NYSEArca: EIPO) and the Monthly 2xLeveraged ETRACS Internet IPO ETN (NYSEArca: EIPL) are both based on an index that provides exposure to Internet companies that have been listed on either the New York Stock Exchange or Nasdaq for less than three years.

via UBS Rolls Out 1X, 2X Internet IPO ETNs.

Related posts:

  1. Tracking Global Leverage: External Debt to GDP
  2. The Market Crash as Double-Entendre Dating Ad
  3. Links: Shortseller Sellers, Leverage, Norway, Wall Street Art, etc.
  4. Niall Ferguson on Planet Finance and the Age of Leverage
  5. The Snow/Leverage Connection

Comments

  1. So Crates says:
    July 21, 2011 at 11:15 am

    How is this not simply gambling?

    • Paul Kedrosky says:
      July 21, 2011 at 4:11 pm

      It's not simply gambling — it's just gambling. In other words, yes.

      • So Crates says:
        July 21, 2011 at 5:27 pm

        Heh – as long as you don't add me to this list:

        /www.economist.com/blogs/johnson/2011/07/peeves

  2. Dennis says:
    July 21, 2011 at 7:05 pm

    How can I short this?

Trackbacks

  1. Thursday links: lessons extracted | Abnormal Returns says:
    July 21, 2011 at 11:13 am

    [...] Leveraged Internet ETNs coming to a trading screen near you.  (IndexUniverse, Infectious Greed) [...]