Most ETNs are overpriced, study claims

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Most exchange-traded notes (ETNs) are overpriced, according to a study of 17 such notes that traded on US exchanges between 2002 and 2011.

The ETNs, issued by leading US banks, traded at prices that failed to reflect the risk that the banks could fail and leave holders of the notes as unsecured creditors, according to the study, which was published in The Journal of Fixed Income. The authors, scholars at the Goethe University in Frankfurt, the Hebrew University of Jerusalem and the Technion

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