ETFs and ETNs Caught Up in Credit Turmoil

MarketWatch columnist John Spence looked into which ETFs and ETNs are being impacted by the current credit crisis in his blog post Credit storm threatens ETFs and ETNs.

Spence notes that the collapse of Lehman Brothers has created uncertainty around three ETNs issued by Lehman. ETNs are debt instruments dependent on the credit of the issuer.

The three ETNs issued by Lehman are:

  • Opta S&P Listed Private Equity Index Net Return ETN (PPE)
  • Opta Lehman Brothers Commodity Index Pure Beta Total Return ETN (RAW)
  • Opta Lehman Brothers Commodity Index Pure Beta Agriculture Total Return ETN (EOH)

The ETNs were lightly traded. For example, PPE was last traded on September 4 when it had a total market cap of $4.3 million. More information is available at the Lehman ETN website.

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