Lehman Failure Illustrates Risks Of ETNs
Posted on September 16, 2008 at 21:00 PM EDT
One of the ways in which exchange traded notes (ETNs) differ from exchange traded funds (ETFs) is that they’re debt instruments. This means that you’re taking on the credit risk of the issuer, and if the issuer goes under, you lose your money. The demise of Lehman Brothers (LEH) serves to illustrate some of the risks [...]