Leveraged Beaver Cheese Futures, I Mean Mortgage REITs

[brewer12345]

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

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...

 

[braumeister]

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.

 

[brewer12345]

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.

 

[ziggy29]

I actually thought this said "Leveraged Beaver Cleaver" when I started skimming down the list of topics...

 

[Chuckanut]

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.

 

[ziggy29]

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...

 

[kumquat]

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?

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

 

[Nords]

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!

 

[Eager Beaver]

I will be following this topic with great interest.