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