Comments on: Lehman Failure Illustrates Risks of ETNs http://www.etftrends.com/2008/09/lehman-failure-illustrates-risks-of-etns.html Keeping a grip on exchange traded funds (ETFs) Sun, 08 Nov 2009 02:14:36 -0800 http://wordpress.org/?v=2.8 hourly 1 By: Tom Lydon http://www.etftrends.com/2008/09/lehman-failure-illustrates-risks-of-etns.html/comment-page-1/#comment-3417 Tom Lydon Mon, 23 Feb 2009 21:53:40 +0000 http://www.etftrends.com/?p=5076#comment-3417 Hi David, Shorting an ETN is not the best idea for a couple reasons: 1) The indicative value doesn't reflect the credit of the issuer; it's more linked to the underlying assets in the ETN 2) When you sell short, someone has to locate someone to borrow shares. If everyone's scrambling to get out, you might get bought in on your short. Hi David,

Shorting an ETN is not the best idea for a couple reasons:

1) The indicative value doesn’t reflect the credit of the issuer; it’s more linked to the underlying assets in the ETN
2) When you sell short, someone has to locate someone to borrow shares. If everyone’s scrambling to get out, you might get bought in on your short.

]]> By: Tom Lydon http://www.etftrends.com/2008/09/lehman-failure-illustrates-risks-of-etns.html/comment-page-1/#comment-3389 Tom Lydon Thu, 19 Feb 2009 16:06:23 +0000 http://www.etftrends.com/?p=5076#comment-3389 Hi David, We're working on an answer for you. Thanks for your patience! Hi David,

We’re working on an answer for you. Thanks for your patience!

]]> By: David http://www.etftrends.com/2008/09/lehman-failure-illustrates-risks-of-etns.html/comment-page-1/#comment-3335 David Fri, 13 Feb 2009 16:02:42 +0000 http://www.etftrends.com/?p=5076#comment-3335 What if you short an ETN, and the investment bank that issued them goes under . . . Aren't you safe then? . . . In fact don't you make a windfall profit since the ETN basically goes to zero theoretically? What if you short an ETN, and the investment bank that issued them goes under . . . Aren’t you safe then? . . . In fact don’t you make a windfall profit since the ETN basically goes to zero theoretically?

]]> By: Tom Lydon http://www.etftrends.com/2008/09/lehman-failure-illustrates-risks-of-etns.html/comment-page-1/#comment-1992 Tom Lydon Wed, 17 Sep 2008 16:30:21 +0000 http://www.etftrends.com/?p=5076#comment-1992 Yes, we've been taking a look at that story. So far, we haven't noticed any issues, but we're digging into it! http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=172975&d=340&h=341&f=342 Yes, we’ve been taking a look at that story. So far, we haven’t noticed any issues, but we’re digging into it!

http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=172975&d=340&h=341&f=342

]]> By: Anonymous http://www.etftrends.com/2008/09/lehman-failure-illustrates-risks-of-etns.html/comment-page-1/#comment-1989 Anonymous Wed, 17 Sep 2008 16:12:09 +0000 http://www.etftrends.com/?p=5076#comment-1989 Has anyone also noticed that etf securities (not all but many etfs) have been suspended from trading? they are partners with AIG. i think counter-party risk is truly taking on a new definition!!! Has anyone also noticed that etf securities (not all but many etfs) have been suspended from trading? they are partners with AIG. i think counter-party risk is truly taking on a new definition!!!

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