Boost launches triple leveraged gilts ETP on LSE

Nov 26th, 2014 | By | Category: Fixed Income

Boost, a leading European provider of short and leveraged exchange-traded products and a division of WisdomTree Europe, has listed Europe’s first ever triple leveraged gilts ETP.

Boost launches triple leveraged gilts ETP on LSE

Hector McNeil, Co-CEO of Boost.

Listed on the London Stock Exchange, the Boost Gilts 10Y 3x Leverage Daily ETP (3GIL) provides three times geared exposure to 10-year UK government bonds (known as gilts).

The ETP provides a total return comprised of three times the daily performance of the Long Gilt Rolling Future Index, which tracks front-month long-gilt futures, plus the interest revenue earned on the collateralised amount.

This means, for example, that if the the Long Gilt Rolling Future Index rises by 1% over a day, then the ETP will rise by 3% (excluding fees and interest revenue). Conversely, if the index falls by 1% over a day then the ETP will fall by 3% (excluding fees and interest revenue).

Long-gilt futures are traded on LIFFE and deliver UK government bonds with 8.75-13 years to maturity.

The new ETP is Boost’s third 3x sovereign debt ETP to be listed on the LSE. The two current ETPs listed on the LSE are the Boost US Treasuries 10Y 3x Short Daily ETP (3TYS) and the Boost Gilts 10Y 3x Short Daily ETP (3GIS).

Commenting on the launch, Hector McNeil, Co-CEO of WisdomTree Europe, said:  “We are very pleased to bring Europe’s first 3x leverage Fixed Income ETP, 3GIL, to Europe. Along with the recently listed Boost Gilts 10Y 3x Short Daily ETP (3GIS), the two ETPs provide investors the ability to trade both rising and falling Bank of England interest rates. With increasing uncertainty around Bank of England rate rises and the timing of those actions, 3GIL and 3GIS are ideal tools for investors to hedge their Sovereign Bond risks.”

The listing brings Boost’s product range to a total of 92 listings on the London Stock Exchange, Borsa Italiana and Xetra.

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