Boost launches London’s first short treasuries ETP

US TreasuryThe first fixed income exchange-traded product (ETP) that shorts US treasuries and magnifies returns or losses by three times has been listed on the London Stock Exchange.

Boost ETP, which launched the product, says it expects demand for short exposure to fixed income to increase dramatically as interest rates rise.

The Boost US Treasuries 10Y 3x Short Daily ETP is designed to return minus three times the daily movement of the relevant benchmark index. For example, if the BNP Paribas US Treasury Note 10-year Future Index falls by 1% on a day, then the ETP will rise by 3% on that day after fees and adjustments. However, it will also fall three times more than the index rises.

Last week, Boost ETP, which is owned by WisdomTree, launched a similar product shorting UK gilts.

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