Barclays launches inverse US Treasury bond ETN

Jul 17th, 2014 | By | Category: Alternatives / Multi-Asset

Barclays has unveiled the Barclays Inverse US Treasury Composite ETN (TAPR), a series of Nasdaq-listed exchange-traded notes designed to help investors position for rising US dollar Treasury yields.

Barclays Inverse US Treasury Composite ETN

The Barclays Inverse US Treasury Composite ETN (TAPR) has been designed to help investors position for rising US dollar Treasury yields.

The ETN is linked to the Barclays Inverse US Treasury Futures Composite Index, an index tracking the sum of the returns of periodically rebalanced synthetic short positions in equal face values of each of the 2-year, 5-year, 10-year, long-bond and ultra-long US Treasury futures contracts.

Manish Saraf, Director, Macro Structuring at Barclays, said: “With economic targets being met, and the Federal Reserve continuing the tapering of its quantitative easing program, many investors are concerned about the potential of rising USD interest rates. The TAPR ETNs are the only ETNs that provide inverse exposure to all five tenors on the US Treasury Futures curve using a single instrument.”

Ian Merrill, Head of ETNs Americas at Barclays, added: “TAPR expands and complements our existing range of fixed income ETNs, and offers investors a differentiated strategy to hedge against or benefit from rising US dollar interest rates. TAPR is also the first Barclays-issued ETN to be listed on Nasdaq.”

Dave LaValle, Head of Exchange Traded Product Listings at Nasdaq OMX, commented: “We are thrilled to embark on a closer partnership with Barclays and introduce their unique exchange-traded products into one of the single largest pools of liquidity. As an operator of leading electronic trading venues in asset classes including cash equities and fixed income, we continue to facilitate various investment opportunities in these products.”

Barclays ETNs are senior, unsecured, unsubordinated debt securities issued by Barclays Bank PLC.

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