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AMJ Gets A Cap: MLP ETFs In Focus
June 19, 2012 at 07:00 AM EDT
One of the largest ETNs has reached its maximum weight according to the issuing institution, and will soon face restrictions on growth. JP Morgan announced on Monday that it would cap the maximum number of shares of the popular Alerian MLP Index ETN (AMJ) that can be issued, meaning that creations of the note could soon be halted. The cap of 129 million shares translates to a market value of about $4.7 billion. JP Morgan announced on its web site that it would be issuing the remaining 11.05 million ETNs authorized for issuance on Tuesday [for ETF analysis, sign up for the free ETFdb newsletter]. Premium Ahead? The suspension of creations of new shares of exchange-traded products can lead to a premium in share prices. Because so-called Authorized Participants are not able to exchange baskets of the underlying securities for new shares in the ETN when prices rise above the [...] Click here to read the original article on ETFdb.com. Related Posts: UBS Debuts Wells Fargo MLP ETN (MLPW) ALPS Launches First MLP ETF (AMLP) MLPA: The Low-Cost Leader In MLP ETFs Second MLP ETF Debuts (YMLP) Morgan Stanley Debuts High Yield MLP ETN
One of the largest ETNs has reached its maximum weight according to the issuing institution, and will soon face restrictions on growth. JP Morgan announced on Monday that it would cap the maximum number of shares of the popular Alerian MLP Index ETN (AMJ) that can be issued, meaning that creations of the note could soon be halted. The cap of 129 million shares translates to a market value of about $4.7 billion. JP Morgan announced on its web site that it would be issuing the remaining 11.05 million ETNs authorized for issuance on Tuesday [for ETF analysis, sign up for the free ETFdb newsletter]. Premium Ahead? The suspension of creations of new shares of exchange-traded products can lead to a premium in share prices. Because so-called Authorized Participants are not able to exchange baskets of the underlying securities for new shares in the ETN when prices rise above the [...]
