Wow, Just Like Old Times! (VIX +72%)

[Maddy]

Forum administrators, get the application forms ready!

[Tyler]

I was going to post something similar but you beat me to it.

[ochotona]

Bonds starting working again today! And gold.

[dualstow]

Forum administrators, get the application forms ready!

ha!

[clacy]

Did XIV liquidate?

I pulled up their data to see what kind of carnage ensued recently and it looks like it may have stopped trading!

[D1984]

Clacy,

XIV did what is called an early acceleration; being an ETN and not an ETF they have the right to do so as laid out in their prospectus. Credit Suisse (the issuer) had the right to "accelerate" the maturity of the ETN from the original due date if the underlying ever lost 80% or more of its value (which it did yesterday after hours). The last price for XIV will be fixed on Feb 15th and shareholders (noteholders) of record as of that date will on Feb 20th get in cash whatever its value was on the 15th.

As far as I can tell, SVXY has had its trading halted but has not (yet) been terminated; the prospectus for it is a little less clear if Proshares (its issuer) could terminate it or not simply because the underlying had a massive loss but is till not yet at zero since it is an ETF and not an ETN. They COULD terminate it and maybe they will but since it is actually a representation of the underlying--rather than a debt obligation of the issuer itself--and the underlying still has value they may or may not choose to terminate it. Trading in SVXY this morning was temporarily halted by the exchanges itself, not by Proshares. Yahoo Finance shows it trading as of 1:40 PM at around eleven bucks and some change.

Didn't forum member KBG have some money in XIV for his quasi 3X leveraged portfolio, or was that only a simulation?

EDIT: https://www.nasdaq.com/press-release/pr ... 0206-00946

Proshares said did not terminate it as per press release above. Seems like it's trading at a little less than 2% off NAV IIV (as per Vance Harwood at Six Figure Investing) but still trading like normal. I don't know if Proshares can terminate it later or not but for now (at 1:45 PM Eastern time) it's still alive and kicking.

[eufo]

Wow about XIV... I considered a XIV trading strategy many many years ago, but decided that the meltdowns were just too severe... yikes!

[Kriegsspiel]

How could one expect any less from a financial instrument pronounced* like something you use to stab people in the back.

* by me, at any rate.

[dualstow]

Shiv? I guess I was doing that, too, although not really consciously or aloud.
Funny!

How could one expect any less from a financial instrument pronounced* like something you use to stab people in the back.

* by me, at any rate.

[eufo]

Shiv? I guess I was doing that, too, although not really consciously or aloud.
Funny!

How could one expect any less from a financial instrument pronounced* like something you use to stab people in the back.

* by me, at any rate.

Ahh, thank you. I couldn't figure out what he meant.

I've always pronounced it Ziv.

[dualstow]

Hmm, Ziv makes sense, too. I think I'm influenced by Mandarin Chinese (even though my Mandarin is shitty). Like President Xi, pronounced kind of like English 'she'. But Americans often say that X like a Z in Chinese, where Xiang becomes /zang/ or /zy-aeng/. Influenced by xylophone, no doubt.

[Kriegsspiel]

Like President Xi, pronounced kind of like English 'she'. But Americans often say that X like a Z in Chinese, where Xiang becomes /zang/ or /zy-aeng/. Influenced by xylophone, no doubt.

[Libertarian666]

Hmm, Ziv makes sense, too. I think I'm influenced by Mandarin Chinese (even though my Mandarin is shitty). Like President Xi, pronounced kind of like English 'she'. But Americans often say that X like a Z in Chinese, where Xiang becomes /zang/ or /zy-aeng/. Influenced by xylophone, no doubt.

It should obviously be pronounced "fourteen".

[dualstow]

Right!