For investors interested in finding out the painful areas of investing, Barclays (LON:BARC) Inverse US Treasury Composite ETN (CM:TAPR) is probably on radar now. The product just hit a 52-week low, and shares of TAPR are down roughly 60.2% from their 52-week high price of $40.84/share.
Are more pains in store for this ETN? Let’s take a quick look at the fund and its near-term outlook to get a better idea of where it might be headed:
TAPR in Focus
The note follows the Barclays Inverse US Treasury Futures Composite Index. This benchmark looks to track the sum of the returns of the periodically rebalanced short positions in equal face values of each of the 2-year, 5-year, 10-year, long-bond and ultra-long U.S. Treasury futures contracts (see all inverse bond ETFs here).
Why the Move?
The Brexit dampened risk-on sentiments across the globe badly and inspired risk-off trade. All safe assets like the U.S. Treasury bonds benefited from Brexit. With global growth falling prey to this event, investors’ rate hike worries even in the U.S. seem non-existent at the current level. This explains the latest move in the inverse U.S. Treasury ETN.
More Pains Ahead?
The note has a negative weighted alpha of 61.13. A negative weighted alpha hints at more pains.
BARCLY-INV USTC (TAPR): ETF Research Reports
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