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Barclays Redeems VIX ETN
September 13, 2011
Barclays Bank (NYSE: BCS) announced the automatic redemption of its iPath Inverse January 2021 S&P 500 VIX Short-Term Futures Exchange Traded Note (NYSEArca: IVO).
The ETN is being redeemed as the result of when the intraday indicative note value of the note on any trading day is equal to or less than the automatic termination level of $10.00. Details of the automatic termination event are below.
Automatic Termination Date: September 12, 2011
Time of Automatic Termination Event: 2:11pm EST
Automatic Termination Level: $10.00
Holders of IVO on September 19, which is the fifth business day following the automatic termination date, will receive a cash payment equal to the automatic redemption value.
Automatic Redemption Date: September 19, 2011
Automatic Redemption Value: $11.8024
Unlike traditional ETFs, exchange-traded notes also known as ETNs are debt obligations backed by the financial or banking institution that issues them. ETNs pay a return linked to the performance of a single security or index.
At the end of August, Barclays ETNs had $7.83 billion in 81 U.S. listed ETNs. |
