iPath, a unit of Barclays PLC, launched eight exchange traded notes (ETNs) that track the Treasury market, signaling the firms entry into fixed income investment tools.
Fixed-income is hot right now. Investors seeking safe-havens are on the hunt for Treasuries, despite yields at 15-month lows on the 10-year. Investors emboldened by a strong earnings season are making a play for corporate and high-yield debt. [The Appeal of Treasury ETFs.]
Among the new launches is an interesting pair of ETNs that allow investors to bet on whether the yield curve will grow steeper or flatten out:
- iPath US Treasury Steepener (NYSEArca: STPP)
- iPath US Treasury Flattener (NYSEArca: FLAT)
Steve Dew at Index Universe says that FLAT takes long positions in two-year Treasury futures and short positions in 10-year futures.
The ETN pairs include:
- iPath US Treasury 10-year Bull ETN (NYSEArca: DTYL)
- iPath US Treasury 10-year Bear ETN (NYSEArca: DTYL)
- iPath US Treasury 2-year Bull ETN (NYSEArca: DTUL)
- iPath US Treasury 2-year Bear ETN (NYSEArca: DTUS)
- iPath US Treasury Long Bond Bull ETN (NYSEArca: DLBL)
- iPath US Treasury Long Bond Bear ETN (NYSEArca: DLBS)
ETNs and ETFs share many similarities, but they differ in key respects. Read about them here.
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.