UBS Investment Bank announced that today is the first day of trading on the NYSE Arca for the ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (NYSE: MORL). MORL is linked to the monthly compounded 2x leveraged performance of the Market Vectors ® Global Mortgage REITs Index (the “Index”), reduced by investor fees.
Variable monthly coupon linked to 2 times the cash distributions, if any, of the Index constituents, less any withholding taxes
|2x Index Yield*||24.82%|
|Underlying Index||Market Vectors ® Global Mortgage REITs Index|
|Leverage||2x Leverage with Monthly Reset|
* Based on 2 times the Index dividend yield calculated as of September 30, 2012 by Market Vectors. Investors are not guaranteed any coupon or distribution.
MORL Offers Investors:
- Monthly compounded 2x leveraged exposure to the Market Vectors ® Global Mortgage REITs Index, less fees, making it the only exchange-traded product with leveraged exposure to a mortgage REIT index offered on U.S. exchanges.
- Significant income potential in the form of a variable monthly coupon linked to 2 times the cash distributions, if any, on the index constituents, less any withholding taxes.
- Leverage that is reset monthly, not daily.
“This ETN is designed for investors who seek a high yield and are bullish on the mortgage REIT sector,” said Paul Somma, Executive Director and Senior ETRACS Structurer. “MORL offers high monthly income potential and leveraged exposure to a mortgage REIT index, all by way of a single, exchange-traded security.”