Tuesday, March 27, 2012

"Barclays Gas ETN Plummets..." (GAZ)

Following up on Friday's "Psst, Wanna Know Another ETN Trading at a Premium To Indicative Value? (TVIX)".

You're welcome.

Here's Bloomberg:
A Barclays Plc (BARC) exchange-traded note that traded 134 percent above the value of the natural-gas index it’s tied to lost 42 percent of the premium in three days as investors exit funds that diverge from underlying assets.

The iPath Dow Jones-UBS Natural Gas Total Return Sub-Index ETN has plunged 29 percent since March 21 as its benchmark index decreased 7.1 percent, according to data compiled by Bloomberg. Barclays suspended issuance of new shares in August 2009, which may cause the notes “to trade at a premium or discount in relation to their indicative value,” the bank said in a statement at the time. The note fell 3.2 percent to $3.64 at 2:23 p.m. in New York.

The note, which was trading at the highest premium to its index among more than 1,000 U.S. exchange-traded products yesterday....MORE
Yeah, kinda caught our eye too.