WT US Treas 10Y 3x Daily Short (3TYS)

Overview

The Boost US Treasuries 10Y 3x Short Daily ETP is an investment product designed to offer investors a way to speculate on the inverse performance of the US Treasury Note futures market, specifically focusing on the 10-year maturity segment. This Exchange-Traded Product (ETP) aims to deliver thrice the opposite of the daily return of the BNP Paribas US Treasury Note 10Y Future Index. By being fully collateralised and UCITS eligible, it offers a secure and regulatory compliant investment option. The underlying index tracks the front-month 10-Year US Treasury Note futures traded on the Chicago Board of Trade (CBT), which in turn are agreements to buy or sell the US government bonds with maturities ranging from 6.5 to 10 years at a predetermined price at a future date. Additionally, this financial product generates interest revenue from the collateral it holds, further contributing to the total return for its investors.

Products and Services

• 3x Short Daily ETP on US Treasuries 10Y

  This is the primary product offered under the Boost US Treasuries 10Y suite. It specifically caters to investors looking to capitalize on declines in the 10-year US Treasury note futures market. By providing three times the inverse daily performance, it enables a leveraged position against the underlying futures. This product is ideal for sophisticated investors with a bearish outlook on the US government bond market, especially those who seek to profit from or hedge against short-term movements in interest rates.

• BNP Paribas US Treasury Note 10Y Future Index Tracking

  This service is an integral part of the ETP's operation, ensuring that the product accurately mirrors the triple inverse performance of the tracked index. The BNP Paribas US Treasury Note 10Y Future Index provides a benchmark for the front-month futures contracts of 10-Year US Treasury Notes. Investors are thus provided with a transparent and efficient way to gauge the performance of their investment against the broader market movements in US treasury futures.

• Fully Collateralised Investment

  Besides leveraging declines in the treasury market, the Boost US Treasuries 10Y 3x Short Daily ETP reassures investors of its safety by being fully collateralised. This means that the ETP holds assets sufficient to cover its obligations, significantly mitigating counterparty risk. Investors benefit from the added security of knowing their investment is backed by tangible assets, adding a layer of protection against market volatility.

• Interest Revenue on Collateral

  An additional facet of this product is the interest revenue generated from the collateralised amount. The ETP not only aims to provide returns through the inverse performance of the US Treasury note futures but also enhances total return by earning interest on the collateral held. This feature offers investors a dual revenue stream, juxtaposing the potential gains from the ETP's performance with steady interest income, thereby optimizing the overall investment proposition.