The Current Status of High Yielding 2x leveraged ETNs
With treasury interest rates at their lowest levels ever, some investors seeking higher yields are turning to leveraged instruments. High yielding MLPs and mREITs, typically own assets that generate cash flows over relatively long time periods, such as pipelines and mortgages. The higher yielding MLPs and mREITs generally use leverage to increase their current yields. Other than very distressed junk bonds and preferred stocks, the highest current yields now available are from 2x leveraged ETNs. UBS Group AG (UBS) sponsors a number of 2x