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The composite forward LIBOR rate on each day is equal to the weighted average of the forward 30month U.S. dollar LIBOR rates implied int he daily settlement prices of the next eight quarterly Eurodollar futures contracts.
LIBOR, or also known as the London interbank offered rate, is the average rate at which London’s banks are charged when borrowing from other banks, or similar to how the Fed fund rates operate in the U.S.
“In today’s unique interest rate environment, many investors are looking for tools that can be used to manage interest rate risks, and we are very pleased to provide the first ETNs allowing them to do so with daily exposure to the composite forward LIBOR rate,” Nick Cherney, Senior Vice President, Head of Exchange Traded Products for Janus Henderson, said in a note.
For more information on new fund products, visit our new ETFs category.