Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Leveraged Beaver Cheese Futures, I Mean Mortgage REITs
Old 10-18-2012, 03:45 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Leveraged Beaver Cheese Futures, I Mean Mortgage REITs

Now available to retail investors *snigger* in a handy package:

UBS Launches ETN with High Monthly Income Potential and Leveraged Exposure to Mortgage REITs - MarketWatch

Quote:
NEW YORK, Oct 17, 2012 (BUSINESS WIRE) -- UBS Investment Bank announced that today is the first day of trading on the NYSE Arca for the ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN . MORL is linked to the monthly compounded 2x leveraged performance of the Market Vectors(R) Global Mortgage REITs Index (the "Index"), reduced by investor fees.
MORL Profile Income Potential Variable monthly coupon linked to 2 times the cash distributions, if any, of the Index constituents, less any withholding taxes 2x Index Yield* 24.82% Underlying Index Market Vectors(R) Global Mortgage REITs Index Leverage 2x Leverage with Monthly Reset
The underlying REITs in the index have average balance sheet leverage of about 8X, so this instrument has about 16X leverage. Buy it on margin and you could get up to 32X leverage, just like a SIV in 2007!

Yeah, this will end well...
__________________

__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-18-2012, 04:03 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Location: Northern Kentucky
Posts: 8,591
I wonder if there might be a way to turn this into a deferred variable ETN-based annuity, then package it with some vaguely similar financial "instruments" and create a prospectus with about 15 terabytes of verbiage, only available on one hard drive (but you're welcome to come to our office any time to peruse it at your leisure).

Properly promoted, I feel sure there would be willing customers.
__________________

__________________
Pas de lieu Rhône que nous.
braumeister is offline   Reply With Quote
Old 10-18-2012, 04:08 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Quote:
Originally Posted by braumeister View Post
I wonder if there might be a way to turn this into a deferred variable ETN-based annuity, then package it with some vaguely similar financial "instruments" and create a prospectus with about 15 terabytes of verbiage, only available on one hard drive (but you're welcome to come to our office any time to peruse it at your leisure).

Properly promoted, I feel sure there would be willing customers.
Don't forget the giant commission for the local dealer salesperson.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 10-18-2012, 04:21 PM   #4
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
I actually thought this said "Leveraged Beaver Cleaver" when I started skimming down the list of topics...
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 10-18-2012, 05:10 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 6,322
Sheesh! This makes Greek bonds look good. And the Greeks do make some great cheeses, much better than that beaver cheese so often mentioned on this forum.
__________________
The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline   Reply With Quote
Old 10-18-2012, 05:12 PM   #6
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by Chuckanut View Post
Sheesh! This makes Greek bonds look good. And the Greeks do make some great cheeses, much better than that beaver cheese so often mentioned on this forum.
Yep, the desperate search for yield continues, and the offerings just get junkier and junkier...
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 10-18-2012, 06:42 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Nov 2005
Location: North of Montana
Posts: 2,753
Finally, a simple, easy to understand, more or less fool-proof investment yielding a reasonable and well deserved 25%. Why can't other companies make it so easy to retire with not a lot of investments?
Quote:
MORL is linked to the monthly compounded 2x leveraged performance of the Market Vectors(R) Global Mortgage REITs Index (the "Index"), reduced by investor fees.
MORL Profile Income Potential Variable monthly coupon linked to 2 times the cash distributions, if any, of the Index constituents, less any withholding taxes 2x Index Yield* 24.82% Underlying Index Market Vectors(R) Global Mortgage REITs Index Leverage 2x Leverage with Monthly Reset
__________________
There are two kinds of people in the world: those who can extrapolate conclusions from insufficient data and ..
kumquat is offline   Reply With Quote
Old 10-18-2012, 06:51 PM   #8
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Quote:
Originally Posted by brewer12345 View Post
Now available to retail investors *snigger* in a handy package:
The underlying REITs in the index have average balance sheet leverage of about 8X, so this instrument has about 16X leverage. Buy it on margin and you could get up to 32X leverage, just like a SIV in 2007!
Yeah, this will end well...
Finally an investment you can buy, hold, and forget!
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 10-18-2012, 08:26 PM   #9
Dryer sheet aficionado
Eager Beaver's Avatar
 
Join Date: May 2010
Posts: 28
I will be following this topic with great interest.
__________________

__________________
eager beaver - n. Informal - One that is exceptionally, often excessively industrious or zealous: "The eager beavers of industry seldom reach their potential, much less rise to the top" (Newsweek).
Eager Beaver is offline   Reply With Quote
Reply

Tags
beaver cheese, chasing yield, idiocy


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 07:57 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.