The end for ETNs?

The bankruptcy of Lehman Brothers has hammered home the importance of counterparty risk, fuelling dire predictions for the future of exchange-traded notes. But while some product issuers are retreating from the area, others remain optimistic. By Mark Pengelly


Counterparty risk has fast become a dominant market issue for investors of all types. Before the outbreak of the current financial crisis, worries about a counterparty defaulting were largely confined to banks when dealing with their clients. Now, it has become a widespread concern - particularly among investors in exchange-traded notes (ETNs).

This is partly the result of the collapse of Lehman Brothers, which made the worst counterparty fears of market participants a reality. The implosion of

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here