MLPL: Juicing the Yield to 12.9%

The UBS E-TRACS 2x Leveraged Long Alerian MLP Infrastructure Index ETN (MLPL) was listed for trading July 7, 2010. This is the second product UBS has introduced on the same underlying index. The first was launched back on the first day of April and is the unleveraged version: UBS E-TRACS Alerian MLP Infrastructure Index (MLPI). The new MLPL ETN is designed to track a leveraged investment (reset monthly) in the Alerian MLP Infrastructure Index. It will pay a variable quarterly coupon linked to the leveraged cash distributions associated with the underlying MLP constituents, less financing costs and investor fees. The underlying index is comprised of 25 energy infrastructure Master Limited Partnerships that generally earn the majority of their cash flow from the transportation and storage of energy commodities. According to…