Exchange-traded notes (ETNs)face both market risk and the risk of the issuing bank defaulting.

Question

Quizplus · Accepted Answer

ETNs are debt securities issued by banks that promise to pay the performance of an underlying index minus fees, and as such, they carry the risk of the issuing bank defaulting. Additionally, they also carry market risk, meaning their value can go up or down depending on the performance of the underlying index.

Exchange-Traded Notes (ETNs)face Both Market Risk and the Risk of the Issuing