DLBSiPath US Treasury Long Bond Bear ETN
DLBS Fund Description
DLBS provides inverse exposure to the Barclays Long Bond US Treasury Futures Targeted Exposure Index. The inverse note gains 10 cents for each 1 point drop in the index.
DLBS Factset Analytics Insight
DLBS offers atypical inverse exposure to long-dated US Treasurys in an ETN with middling interest. “Long-dated” here means bonds with 15 to 25 years remaining maturity. The “Bear” in the note’s name indicates direction—that it rises when yields rise, unlike a bond. However, DLBS differs from most inverse products in that it does not set exposure based on a fixed multiple like -1x or -2. Instead it aims for a fixed dollar exposure to its index, so it increases a dime for each 1 point decrease in the index. The index itself (inversely) moves a point for each basis point of change in yield with the whole idea being fixed dollar exposure relative to changes in yield. This adds up to “variable” exposure compared with the more typical fixed-multiple daily-reset geared products. For example, a 10 cent increase on a $50 handle is a 20 bp move while the same increase if the note stands at $100 produces a 10 bp move. The note has more interest than some of its sister products: AUM and daily trading volume are respectable, though spreads should be watched.
DLBS CHARTS AND PERFORMANCE
DLBS Portfolio Data
DLBS Index Data
DLBS Fund Structure
DLBS Tax Exposures
DLBS Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of DLBS. DLBS is rated a 5 out of 5.