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Earlier this year, the exchange traded note (ETN) market really began to take root, but now the $6.8 billion market is on shaky ground as the credit risk keeps revealing new obstacles to overcome.
Those unsure balance sheets and risky banks are bringing more attention to investor’s attention to credit risk.
Hannah Glover for Ignites reports that unlike exchange traded funds (ETFs), ETNs are actually debt instruments that offer a return based on the performance of an index. Investing in notes means taking on the counterparty risk.