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Italian Bond ETFs: High Risk, High Reward
By Devon Layne | February 08, 2012

Related ETFs: ITLT / ITLY

While still carrying great risk, bold investors could take advantage of the lull in the eurozone’s debt crisis by playing rising bond prices and falling yields in Italy with two U.S.-listed ETNs, according to an article on Zacks.

The PowerShares DB Italian Treasury Bond Futures ETN (NYSEArca: ITLY) and the PowerShares DB Italian 3X Treasury Bond Futures ETN (NYSEArca: ITLT) are the closest thing to direct exposure in Italy’s bond market, according to the article.

Both ETNs have risen as yields in Italy have fallen, with ITLY jumping 12.4 percent and ITLT 33.5 percent year-to-date, the Zacks report said.

But the article warned investors that if the drop in yields resembles the quick drop seen in early December of last year, yields may hit the 7 percent level once again, according to the article.

For more information, go to Zacks.com.