Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Monday, March 17, 2008

Commodity Crunch

We're having problems putting charts in our issues today. Here are two I wanted to include in the Red-Hot Commodity ETF issue ...
A trader friend tells me: Counterparty risk is a real issue for the ETNs. If Barclays were to go belly-up, everybody who owns iPath notes is at risk. ETFs are a different structure that are not as vulnerable in this way.
NOTE: No one says Barclays is going belly-up. It's just that ETNs have (a very small) risk that ETFs don't.

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