SMHB - SMHD And MORL Holders Learn Expensive Lesson In Premium Reversion
Note: The first part of this article was released to members on September 17, 2019.
In June of this year ("ETRACS 2x Leveraged ETN Snapshot, June 2019: MORL And SMHD At Or Near Record Premiums"), we noted to our members that both UBS ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN (SMHD) and UBS ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (MORL) have reached record premiums:
SMHD's current premium of +19.39% is near its record high of ~20% reached for a few days in March this year.