[Infowarrior] - VelocityShares Launches New “Super Zero” ETN

[Richard Forno]

(just marking the holiday today, albeit with someone else's stuff for a change!  --rick)

VelocityShares Launches New “Super Zero” ETN Designed to Go to Zero Faster Than Any Existing Product

VelocityShares announced today the creation of LOSS, a new exchange traded note designed to accelerate the rate at which its Net Asset Value approaches zero.

CFO Harry Dooker explained:

“We’ve previously structured some products that combine leverage and futures market contango into a package that is highly likely to result in a product whose long term value is zero, yet investors still clamored for them.  In fact, amazingly, investors were willing to pay a huge premium to the underlying Net Asset Value for these products.   As a result, and in keeping with the spirit of our name, VELOCITYShares, we realized that we could increase the velocity at which value was destroyed.”

After much research, Dooker’s team realized that there was a way to crush NAV at an even higher rate.  He explained:

“Two times leverage was good, which obviously means that four times leverage is better.   Prospective investors should be sure to read the prospectus to understand the effect of four times DAILY leverage and how compounded daily leverage is not the same as compounded long term leverage.  We slapped this quadruple leverage on a hybrid basket of natural gas futures and VIX futures in order to accelerate the rate at which the NAV asymptotically approaches zero.”

Mr. Dooker further explained that he got the motivation for the product from the investment gurus at South Park:

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http://kiddynamitesworld.com/velocityshares-launches-new-super-zero-etn-designed-to-go-to-zero-faster-than-any-existing-product/

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Just because i'm near the punchbowl doesn't mean I'm also drinking from it.