The Korea Exchange announced on the 4th that it plans to newly list two US Treasury option strategy Exchange-Traded Notes (ETNs) issued by Meritz Securities on the KOSPI market on the 5th.
The KOSPI index took a direct hit from geopolitical risks stemming from concerns over a full-scale war between the United States and Iran, starting with a sharp drop of over 4% on the 4th. The index is displayed on the status board in the dealing room of Hana Bank, Jung-gu, Seoul. The KOSPI index triggered a sell-sidecar for two consecutive days. Photo by Dongju Yoon
The new listings are the Meritz US Treasury 30-Year Strip Covered Call ETN (H) and the Meritz US Treasury 30-Year Put Light ETN (H).
These products, for the first time among ETNs, offer new investment alternatives that can respond to changing interest rate environments by combining long-term US Treasury bonds with an option premium collection strategy.
ETNs are unsecured, uncollateralized products that carry the issuer's credit risk, so it is important for investors to review the issuer's financial soundness before investing.
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