UBS Investment Bank announced coupon payments for nine ETRACS Exchange Traded Notes (ETNs) traded on the NYSE Arca and anticipated coupon payments for three ETNs listed on NASDAQ. These announcements concern the financial instruments tied to various indices.
The nine NYSE Arca-traded ETNs include the ETRACS Alerian MLP Infrastructure Index ETN Series B (MLPB) with a coupon amount of $0.4114 and an annualized yield of 5.92%, and the ETRACS Quarterly Pay 1.5x Leveraged Alerian MLP Index ETN (MLPR) with a coupon amount of $1.6360 and a yield of 9.57%. Others include ETRACS MarketVector Business Development Companies Liquid Index ETN (BDCZ) and ETRACS Quarterly Pay 1.5x Leveraged MarketVector BDC Liquid Index ETN (BDCX), offering yields of 12.05% and 19.58%, respectively.
"Current Yield (annualized) equals the current quarterly Coupon Amount, multiplied by four (to annualize such coupon), divided by the closing Current Indicative Value of the ETN on its current Coupon Valuation Date rounded to two decimal places for ease of analysis," the announcement noted. Current yields do not guarantee future coupon payments.
Beyond these, ETRACS Monthly Pay 2xLeveraged ETNs such as the US High Dividend Low Volatility ETN Series B (HDLB) with a 11.06% yield, and the US Small Cap High Dividend ETN Series B (SMHB) with a 24.83% yield, are also part of the announcement. Other ETNs include the Preferred Stock ETN (PFFL), 1.5X Leveraged Closed-End Fund Index ETN (CEFD), and 1.5x Leveraged Mortgage REIT ETN (MVRL).
The announcement further covers the expected payments for the NASDAQ-traded ETNs: ETRACS Gold Shares Covered Call ETNs (GLDI), Silver Shares Covered Call ETNs (SLVO), and Crude Oil Shares Covered Call ETNs (USOI).
"The Expected Current Yield equals the sum of (i) the Expected Coupon Amount, plus (ii) the amount of the ETN's two most recent coupon payments, multiplied by four (to annualize such coupons), divided by the Closing Indicative Value, and rounded to two decimal places for ease of analysis," adds the report, warning that future payments may not align with expected yields.
Amidst these updates, the investment bank reminds potential investors of the risks indicated in the documents related to these products. Such risks include market volatility and the variability of coupon payments.
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