Deutsche Bank issues leveraged fixed-income ETNs

Deutsche Bank has issued the first leveraged exchange-traded notes (ETNs) based on the fixed income market in the US, in partnership with Invesco PowerShares.

The ETNs give investors three times long or short exposure to 25-year-plus Treasury bonds. Several fixed-income products have appeared in an exchange-traded fund (ETF) wrapper in the US, but leveraged products have attracted criticism, not least by the US Securities and Exchange Commission, as tracking errors and the compounding effect of